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11/08/2016 01:36 PMMayor Joseph Maturo, Jr., announced Oct. 31 that Standard and Poor’s, one of the world’s leading credit rating agencies, awarded East Haven a two-tier bond rating upgrade, raising the town’s bond rating from A- to A+.
Maturo explained, “This historic, two-tier rating upgrade from A- to A+ confirms that our administration’s efforts to balance our budgets, reduce debt, and increase our rainy day fund have been successful. We are pleased that Standard and Poor’s has validated the town’s fiscal policies and that the firm has assigned a ‘stable’ outlook to our overall financial situation.
The two-tier rating upgrade marks the second credit rating upgrade for Maturo and the Town of East Haven since Maturo returned to office in 2011 and since 2014, when Standard and Poor’s raised the town’s rating from BBB+ to A-.
In raising the town’s credit rating in 2016, Standard and Poor’s cited several factors including “(1) the town’s improved budgetary performance since fiscal 2011 and improved management conditions; (2) adequate budgetary performance; (3) very strong liquidity; and (4) very strong debt and contingent liability position.”
In summarizing the town’s operations under the current administration, Standard and Poor’s noted, “East Haven’s general fund balance deteriorated significantly between fiscal years 2008 to 2010. When a new administration came on board in 2011, the town implemented new policies to curb operating deficits. We acknowledge that the current administration has put into place stronger financial controls and oversight, which have improved budgetary performance, reserves, and overall management conditions.”
Maturo explained, “When I resumed office in 2011, the town was saddled with over $48.1 million in debt. In just five short years, we’ve reduced that indebtedness by an astounding 47 percent to just $25.5 million.”
While Standard and Poor’s cited “ongoing deferral of capital expenditures due to well-established budgetary constraints” as an area of caution, the report concludes that “management has been conservative and prudent in its yearly budgetary planning.”
Maturo continued, “Now that we have our debt and our credit firmly under control, we have already begun to address our town’s capital and infrastructure needs. This year’s road improvement program marked the largest since 2011 and the town is on-track to begin three extensive infrastructure projects: (1) the installation of sidewalks on North High Street, (2) raising Coe Avenue to alleviate flooding, and (3) Phase 1 of the revitalization of the West End of Main Street.”
However, in addressing the town’s infrastructure needs, Maturo also noted that the town has its focus on less grandiose concerns as well.
Maturo explained, “We’re also evaluating ball fields, small drainage projects, traffic signalization issues, and other quality of life concerns we’ve heard from residents.”
Maturo concluded, “Since 2011, this administration has made some tough financial decisions which have revitalized our budget, stabilized our tax rate, and significantly reduced our long term debt. I am thankful to the residents for their patience as we’ve walked this tight fiscal tightrope and proud that our initiatives have paid off again. We still have work remaining. However, I am excited that we are now in a stable fiscal position to be able to address the town’s capital needs. Moving forward, we’re going to tackle those needs while striving to balance our budget, manage out debt, and keep our tax rate stable.”