As the City Council debated a recommendation to increase taxes in order, in part, to increase the City's fund balance, City Finance Chief Howard Rattner told the City Council today that New Rochelle was in a "precarious" position and that any decrease in the fund balance below current levels risks drawing the attention of credit ratings agencies which could ultimately lead to a downgrade of the City's ratings.
City Manager Charles Strome told the City Council that the current fund balance is only about half of the recommended amount so there is no cushion in the event of unexpected expenditures.
Mayor Bramson said fund balance was at an exceptionally low level.
Councilmen Trangucci, Tarantino and St. Paul advocated for foregoing any increase to the fund balance and using that money for property tax relief for residents. St. Paul went further, pointing out that under the City Charter the City is required to keep only $300,000 in the fund balance.
I figure readers may want to weigh in on this and I do not have all the details so I invite readers who do know about this to weigh in and be heard.