New London - City Council President Michael Passero accused the mayor Monday of deliberately withholding financial information from the council and chastised him for trying to have a closed-door meeting to discuss a possible $12 million budget crisis.

"We need to reassure people in this community that there is some control,'' Passero said during Monday's council meeting. "It's disappointing when the professionals tell us one thing and reality tells us another.''

Mayor Daryl Justin Finizio, who announced just over a week ago that the city could be facing a projected $12 million deficit that spans three budget cycles, admitted Monday that "communication with the council has been lacking'' and pledged to work together with the council in the future.

"My earlier actions were based, at the time, on the information I had,'' Finizio said at the meeting. "I accept full responsibility for any breakdowns."

Passero said he found it hard to believe that Finizio was telling the council the city's finances were in order on a Monday and four days later was projecting a $12 million crisis that includes a possible $4.3 million deficit in the current year's budget, which ends June 30.

"I'm invested in your success,'' Passero said. "But there has to be a lot more transparency."

Finizio defended his actions and said he was made aware of the city's dire financial outlook just two days before he told councilors and announced the news at a Jan. 27 press conference.

All retirement packages, settlement agreements, hirings and office renovations he approved since taking office in December were made with advice from the city staff, who assured him there was money in the budget, Finizio said.

The City Council is trying to understand how there could be a deficit in the current year's budget and a $1.3 million deficit in the 2010-11 budget that ended June 30, 2011. Passero said the council received a memo in June that projected a small surplus for the 2010-11 budget.

Finizio has also said the city will need to replenish about $6 million to its fund balance and come up with an additional $4.3 million for the 2012-13 budget, which has not yet been prepared. He has ordered a hiring freeze and cuts in nonessential spending and said the city may have to issue supplemental tax bills to cover its deficit.

The council's finance committee met Monday for the first in what will be a series of meetings to get a better grasp of the city's finances.

"I fully recognized that so much change, in such a short period of time, in a city with no precedent for such a transition has been an overwhelming shot to the system,'' Finizio said, adding that he felt he needed to make changes immediately after taking office Dec. 5. "This rip-off-the-Band-Aid approach can be turbulent and confusing during its operations, and criticisms are to be expected.''

He said he does not intend to make any more changes and expects to work closely with the council, which he said has the "power of the purse."

"In this new budget, we will clean up line items, clearly define positions and salaries, and set the financial parameters for the city administration,'' he said.

Later in the meeting, the council also voted 4-3 to approve an appropriation ordinance, requested by Finizio, for funding for three support staff, a public works director, a director of development and planning and a deputy fire chief.

Councilors Wade Hyslop, John Maynard, Donald Macrino and Anthony Nolan voted in favor of the appropriation. Passero and councilors Adam Sprecace and Marie Friess-McSparran voted against it.

k.edgecomb@theday.com

Day staff writer Sasha Goldstein contributed to this report.