This is a printer-friendly version of an article from Zip06.com.

East Haven Audit Confirms $1.29 Million Surplus

Mayor Joseph Maturo, Jr., recently announced the release of East Haven’s 2014-2015 fiscal year audit, which confirms that the town ended the 2014-’15 fiscal year with a $1.29 million surplus and reduced its long-term indebtedness by $6.61 million.

Maturo explained, “Since resuming office in 2011, we have instituted common sense budget controls and greatly reduced our reliance on bonding as part of a comprehensive, town-wide financial recovery initiative aimed at improving our credit rating and restoring our rainy day fund. I am proud that our efforts have produced four straight surpluses, including a $1.29 million surplus in the 2014-2015 fiscal year.”

According to the audit, the town had total revenues of $88,662,010 and total expenditures of $87,424,438,00. The town also had a small, positive revenue adjustment of $61,290.00. The end result was a yearly surplus of $1,298,862. As a result of the yearly surplus, the town’s running fund balance, or rainy day fund, increased from $2,551,976 to $3,850,838, an increase of 50.8 percent in one year, which positions the fund at its highest level since 2007.

Maturo added, “This turnaround was not easy and it certainly didn’t take place overnight. Running consecutive operating surpluses has required sustained fiscal restraint, careful budgeting, and aggressive economic development efforts. However, thanks to these efforts, the town’s rainy day fund now stands at a healthy $3.85 million, a start contrast from the negative $5.1 million hole East Haven found itself in just five short years ago.”

Major credit rating agencies, like Moody’s and Standard and Poor’s, closely monitor municipalities’ long term debt and recommend that municipalities maintain the equivalent of five percent of their operating budgets as a fund balance. At present, East Haven’s operating budget is $89,097,555.

Maturo explained, “With a surplus in the present budget year, we anticipate we will achieve our goal of restoring the town’s rainy day fund and will surpass the $4.45 million threshold recommended by credit rating agencies like Moody’s and Standard and Poor’s.”

In the fall of 2014, Standard and Poor’s validated the town’s financial recovery efforts and raised the town’s credit rating from BBB+ to A-. Maturo predicts that the full restoration of the fund balance coupled with continued efforts to reduce the town’s long-term debt, will position the town for another credit rating increase in 2016.

Maturo continued, “At the same time, we’ve reduced our debt from $48.1 million in 2011 to a modern historic low of $30.8 million as of June 2015—a reduction of nearly 36 percent in just four years. With the town’s scheduled debt payment in the current budget year, our indebtedness will drop below $30 million to approximately $26.7 million by June 2016. Based on this success, we’re certainly making a compelling case for another upgrade in our bond rating.”