Picard said the solution offered by OPM when the city saw the $14.3 million deficit loom was to bond and to raise property taxes in order to pay the deficit off immediately. Instead, Picard mapped out a plan in which the city would retire the deficit and its more than $270 million bonded indebtedness. The deficit would be retired in about five years, while the bonds would be retired in an on-going manner.

In Picard’s plan city taxpayers would not be burdened with an immediate hike in taxes and saddled with more bonded indebtedness that could take more and more in debt service obligations each year in the city budget.

Agency officials balked at the plan, wanting the city to borrow more than $40 million, according to the mayor. That was a plan that was too dangerous, he believed. During the negotiations he drafted the support of several state officials, including the city’s assembly delegation and got the tacit approval from the office of Gov. M. Jodi Rell.

Picard said the deficit was cut in the last audit by more than $3 million, bringing it down to $10.7, while the city stands to lop off as much as $70 million from the bonded obligations, from $276 million to about $206 million.

“They (OPM) are embarrassed that we’re succeeding, doing it the right way. Their way would have made the situation worse, though it would have temporarily taken care of the problem,” Picard said.

The real embarrassment according to the mayor comes from the fact the city’s methods are being examined by other municipalities and state officials.

“I said a couple years ago when this thing started, West Haven would be seen as a model in its debt-reduction program. It’s already happening. People have seen they don’t have to take care of debt by adding on more debt,” he said.

Picard was miffed the agency officials, including former finance director (in the Borer administration) Tom Hamilton, chose that opportunity to voice their displeasure. Picard said higher-ups in OPM were not present, and in previous meetings they had voiced praise for the way the city was clearing up its debt.

“When I met with officials and the state assembly delegation was there, none of this was said,” he said.

Picard defended himself from what he said was an unjust characterization in some published reports.

“I’ve never said the city’s outlook was ‘rosy.’ I did say we were headed in the right direction, and I stand by it. We’ve got a long way to go, but we’re moving.”