Maturo Unveils $90M Budget Request, Tax Rate Implications Detailed

EAST HAVEN, CT - Mayor Joseph Maturo Jr. unveiled a $90.13 million combined town and school budget for fiscal 2016-17, which he says would hold the line on the tax rate.

“For the upcoming fiscal year, I am proposing that the mill rate remain unchanged. This will preserve the tax savings we generated last year when we instituted the largest tax decrease in a non revaluation year since 1989,” Maturo said.

“In the end, my recommendation to leave the mill rate unchanged was made possible due to two primary factors: the $1 million dollar reduction in our debt payments and the increase in revenue from growth in our grand list. This budget proposal rewards taxpayers with another year of stable, predictable taxes,” Maturo said.

Budget highlights: 1.87 percent overall increase in spending including an additional $250,000 more for the Board of Education budget, and an additional $600,000 to increase the town’s fund balance or rainy date fund.

Maturo noted that last year the town ended up with a $1.29 million budget surplus, which helped increase the fund balance, which is so important to bond rating agencies.

The fund balance stands at $3.85 million and is projected to rise to $4.67 million at the end of the current budget year, which allows the town to meet the 5 percent minimum requirement for the fund balance.

The major increase in the budget is in the area of health insurance costs, which are increasing by 12.26 percent or $1.08 million, but the town’s debt service payment is decreasing by almost $1 million, which helps mitigate the health insurance impact, Maturo said.

The school system is receiving a $250,000 increase as officials have announced consolidation plans, which include closing two schools, the mayor said. Enrollment has decreased from a high of 3,900 several years ago to the current 3,100.

"My proposed budget provides for no change in the mill rate. It provides for $250,000 dollars in new funding for the Board of Educa;on and $600,000 dollars to continue to stabilize the rainy day fund. This budget also provides vital funding for our Police, Fire, and Public Services Departments so that they can con;nue to protect and serve our residents,” Maturo said.