EAST HAVEN

The East Haven Town Council formally adopted its $105 million budget for the 2024-‘25 fiscal year on April 25, driven by state-mandated investments in public safety, education, and insurance.

In total, the budget accounts for $105,567,876 in overall municipal expenses, including the Board of Education (BOE). The total marks a 4.55% increase from the current year's budget of $100,975,764, which is set to expire on Sunday, June 30.

A major aspect within the budget is an increase in the mill rate from 31.2 to 33.44, which came at the request of Mayor Joseph Carfora minutes before the Town Council adopted the budget. Michelle Benivegna, head of administration and management, said the tax increase is “driven significantly by rising costs” for various expenses such as labor contracts and fuel insurance for public safety departments.

The increased mill rate will also go to support Town Hall’s self-insurance plan in light of the shrinking number of insurers in the public market as the town works to implement formal policies and procedures for insurance with the support of groups like the South Central Regional Council of Governments.

“If we don’t have these protocols in place, our exposure for liability greatly increases,” said Benivegna. “It is something that is requiring some serious due diligence on our part and working with the proper people to make sure that we form these policies and procedures that protect the town for the long-term.”

There are also various lawsuits which the town is facing and has appealed, including its litigation against the expansion of Tweed New Haven Airport, by which a hopeful victory for the town can be supported through an increased mill rate.

“We have to fight to be a fair and equitable partner in that whole endeavor,” said Carfora. “It it takes money to fight that, but it'll pay its rewards in the end.”

The increased mill rate is also needed to cover unfunded mandates the town is obligated to fund for its fire and police departments, which are budgeted for a combined total of $16,245,851. These mandates are required by the state laws such as the Police Accountability Act, as well as training and medical services for officers of both departments.

A necessary hike in the town’s mill rate to cover unfunded mandates is not a unique situation relative to East Haven. As previously reported in The Courier, North Haven is facing a similar situation with an increase in its property tax in order to cover unfunded mandates in education, public safety, and insurance plans.

Although East Haven has a $8.3 million rainy day fund, officials recognize that relying upon the fund is not the best financial option for the town, especially when it is now “essential” to maintain its A positive credit score with S&P Global Rating, said Benivegna. The increase of the mill rate will better support that financial relationship and make it easier for the town to go out to bond for expenses like repairing public school buildings. This was a point previously expressed by Carfora in his State of the Town address on March 26.

While obligated by the state to cover the mandates, it nonetheless adds on to Carfora’s unwavering support for the town’s safety officers personnel.

“Public safety’s number one,” he said. “I am not cutting back on public safety. No way.”

The BOE is budgeted for $49,294,271. This includes a last-minute addition of $250,000 to support contracts to keep mid-level teachers within the district. This was another request by Carfora to the Town Council on April 25 which was approved unanimously by the town’s legislative body.

Officials said Town Hall has not “heard much pushback about the mill rate increase” since adopted by the Town Council, partly due to a mutual understanding between them and homeowners facing the same financial pressures.

“We are doing the absolute minimum necessity to meet that need of the increase in the rising costs,” said Benivegna. “They are feeling it in their lives, so they know that we're not immune to the economic climate that everyone is facing.”

Given rising costs, unfunded mandates, and legal matters, town officials acknowledge this year’s crafting of the budget was “challenging” compared to previous ones under Carfora’s administration. However, given these factors and the financial struggles Town Hall and East Haven residents are facing, officials are proud of the state of the town and feel optimistic about its future.

“When they drive through their town, now they see a town that they're proud of,” said Benivegna. “They see their tax dollars being used in a way that enhances their quality of life.”

Benivegna identified critical sources of revenue to support East Haven’s progress in the future, such as the shared animal control services agreement with North Branford which will reign in over $135,000 annually in its first few years, as well as the implementation of a parking permit system that “generates tens of thousands of dollars during the summer months.” Benivegna said the town is “doing our best to increase our business base to bring in some additional tax revenue,” notably with the placement of Starbucks, Chipotle, and Five Guys establishments at 990 Foxon Road, with “a few more businesses coming down the pike.”

“Those are all things that if we didn't go this path of investing in our Town Green beautification, increasing our rainy day fund—those are all instrumental and making East Haven a desirable place for businesses and families,” said Benivegna. “We had to do the hard work to get us to be a community to be recognized and chosen, and now they're coming and we're going to continue to grow.”