East Haven Ends the Year With a $720,000 Budget Surplus

Mayor Joseph Maturo, Jr. announced today that, based on the initial batch of year-end budget services reports from the Town’s Finance Department, the Town is projecting a $720,000 dollar surplus for the 2014-2015 fiscal year.

Maturo explained in a prepared statement, “Thanks to reduced debt service payments, aggressive tax collections, and operating savings achieved by holding the line on discretionary spending, the Town is projecting a strong operating surplus of $720,000 dollars for the 2014-2015 fiscal year which, depending on final revenue calculations through August 31st, could grow to over $1 million dollars.”

Specifically, according to Finance Director Paul Rizza, revenue for the ’14-’15 fiscal year through June 30th totaled $88.12 million and total expenditures, including the Board of Education, were $87.40 million.

Maturo continued, “The projected $720,000 dollar surplus will be added to the Town’s rainy day fund, raising that fund from $2.55 million to $3.27 million dollars – its highest level since 2007.”

Maturo noted in his statement that, “Just five years ago, the Town’s rainy day fund had spiraled into a $5.19 million dollar deficit, prompting the prior administration to raise taxes by 17% just to shore up this vital fund. Even with that crippling tax hike, when I resumed office in November of 2011, this fund had just $200,000 dollars in it - a fraction of the level recommended by credit rating agencies like Moody’s and Standard and Poor’s. However, since 2011, we’ve increased this fund over 1,600% to $3.27 million dollars. As a result of this progress and the fiscal stability we’ve attained, I was able to institute the largest tax decrease in a non-revaluation year for East Haven since 1989 as part of this year’s budget.”

According to the initial budget services reports, strong tax collections and larger-than anticipated receipts from licenses, permits, and miscellaneous fees have the revenue-side of the budget on track to meet and potentially exceed expectations. According to the reports, the Town exceeded its delinquent tax collection goal by over $210,000 dollars and has taken in an additional $98,400 dollars in license and permit fees. On the expense-side of the budget, a significant reduction in police department overtime from last fiscal year and cost-savings from vacancies in a handful of positions that were strategically allowed to remain unfilled helped the Town keep operating costs under control.

Maturo continued, “We’ve employed common sense budgeting to keep spending under control and aggressively pay off debt, moves which led Standard and Poor’s to raise our bond rating from BBB+ to A-. It’s remarkable that we earned this bond rating increase only a few years after agencies twice had lowered our ratings. Now, with the Town’s finances stabilized, we’re moving ahead with an aggressive road paving and capital improvement program for the upcoming year.”

Maturo concluded, “I’ve balanced fourteen straight budgets as East Haven’s Mayor, including all four since returning to office in 2011. Over that same time span, we’ve also made critical infrastructure upgrades including the complete overhaul of our Police Department and the renovation of our Public Safety Dispatch Center. I’m pleased to have generated another surplus budget for our residents. At the same time, with taxes rising across the State, I’m even more proud to have been able to offer our residents a substantial tax reduction this year.”