Gov. Weicker of Connecticut plans to put borough of Jewett City under receivership.

Connecticut Gov. Lowell S. Weicker said he wants to place the borough of Jewett City under state receivership following its default on a loan last week.

The 1.5-square-mile borough of Jewett City is part of the eastern Connecticut town of Griswold.

The governor's announcement came last week after the borough defaulted on a $40,000 loan to the developers of its sewer system. At the same time, Weicker signed a $1.5 million emergency appropriation bill to help the borough pay creditors and cover operating expenses.

During his term as governor, Weicker has also awarded similar, but larger, state grants to Bridgeport and West Haven.

William Mulready, Jewett City warden, said Weicker approved the legislation because of a petition requesting that the governor appoint a receiver that was signed by half of the registered voters in Jewett City.

But, Mulready said, those circulating the petition may have misled the signers.

"The people circulating the petition were asking questions like ~Sign this if you want to save the police department' ... or the road crew," Mulready said. "Would you sign it? I would."

Residents of the Jewett City borough pay taxes to both Jewett City and Griswold. But according to Griswold's first selectman, Donald Burdick, the receiver may advise the borough and the town to merge.

"It looks like the receiver would have almost unlimited powers," Burdick said. "This Saturday, there will be a borough meeting on the subject."

At that time, registered residents in Jewett City will vote on whether the governor should appoint a receiver.

Burdick said the borough has faced budgetary constraints for the last few years, and that poor record keeping and a disproportionately expensive police contract ruled out any hopes of balancing the budget in the current fiscal year.

The borough employs 14 full-time police officers. The money needed to support a force of this size took over two-thirds of the $900,000 yearly budget. According to the latest budget, the borough only brings in around $700,000 in revenues through taxation.

A proposal to merge police forces was rejected by Griswold's council last year. Griswold and Jewett City currently share high school facilities.

Burdick pointed out that Griswold has some reservations about merging with Jewett City. "Griswold is in good shape, we have a $2 million surplus, and the people of the city may not want to deal with the problems of another 3,000 people," he said.

The borough government, which is made up of a warden and a board of burgesses, entered into a new contract with the police force last year. Residents in the town have voiced strong opposition to the contract.

"We have one thing going for us right now," Mulready said. "I am getting a new bunch of burgesses this year. The old group is one of the reasons we're in the shape we are in."

Because of the opposition to the contract, the residents have rejected five budgets in the last nine months. The borough has been able to pay its bills via a series of emergency appropriations.

In general, municipalities in Connecticut are allowed to operate without having a budget in place by using expenditure figures from the previous year as a basis for current year appropriations.

A municipality placed in receivership is nothing new for New England.

In 1991, Chelsea, Mass. was placed under the control of receiver James Carlin, and then Harry Spence, by Gov. William F. Weld.

Chelsea officials say residents and the local government were initially opposed to the receivership. However, they point out that it has worked out well for the city, which is considering reentering the municipal market this year for a school financing.

Jewett City does not have any outstanding bonds, and Griswold was rated Baal before the city's last issuance in March 1992. That issue was insured by Financial Guaranty Insurance Corp. and AAA-rated.

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