Trumbull's 'Rainy Day Fund' Reaches $26 Million

TRUMBULL, CT — Trumbull's Unrestricted General Fund Balance, also known as the town's "rainy day fund" or savings account, grew to $26 million over the past fiscal year, a record amount, according to officials.

For the fiscal year ended June 30, the fund grew by more than $1.7 million, due primarily to an increase in revenue and a drop in expenditures.

"It is apparent that the cautious and prudent fiscal policies of First Selectman Vicki Tesoro and elected Democrats on the Board of Finance and Town Council have been in the best financial interests of the town," said Lainie McHugh, Chair of the Trumbull Board of Finance, in a statement. "We were laser focused on our revenues and every penny of taxpayer funds spent. We were constantly aware of the financial impact of the pandemic on the town and our residents. We owe a debt of gratitude to our town employees and staff who helped us diligently manage our budget and achieve this favorable outcome."

According to officials, last year's budget originally called for the town to use $2.8 million from the fund to avoid a tax increase for residents. However, revenues were $375,000 more than budgeted, and planned expenditures were $4.4 million less than budgeted, in large part due to the "modification of programming and staffing due to the pandemic."

So instead of using $2.8 million from the fund, the fund was able to grow to $26 million, or 14 percent of the annual budget. This was done while keeping the average tax increase over two years to less than 1 percent.

"This is great news for the long-term fiscal health of our town," First Selectman Tesoro said. "The General Fund Balance, or Rainy Day Fund, is one of the major drivers the ratings agencies scrutinize in determining our bond rating. We continue to work hard to attain AAA bond status, and we are only one level away from the top rating. Our goals remain the same: keep taxes stable through sound fiscal management and strategic economic development, while investing in public safety, education, and other critical town services."