Bond Rating Bump: S&P Gives Town 'A' Rating, From Stable To Positive

EAST HAVEN, CT — Town officials met with the bond rating company Standard & Poor’s last week to "discuss the town’s current and future outlook," Economic Development Director Michelle Benivegna said.

In that meeting, Mayor Joseph Carfora, Finance Director Jim Keeley, Town Attorney Michael Luzzi and Benivegna, were told that the outlook on East Haven's General Obligation bonds was revised.

Benivegna said the rating went from stable to positive. She noted that reaffirms its 'A' rating on outstanding GO debt and assigning the same 'A' rating to the new $4.995 million GO bonds, series.

"When Mayor Carfora took over from the prior Republican administration, the town’s outlook was rated as negative," Benivegna said. "Under the Carfora plan, the outlook has moved from negative to stable and now, to positive."

Keeley said the revised credit rating "reflects East Haven's ongoing commitment to improving its financial position and implementing sound budgeting practices, all under the dedicated leadership of Mayor Joseph Carfora."

"The positive outlook highlights the town's potential for better financial performance and consistently stronger reserve balances," Keeley said.

According to Benivegna, the town's "journey to this positive rating has been marked by significant achievements."

Those include the restructuring of a portion of its debt in 2020, which lowered costs, provided budgetary relief, and stabilized reserves, town officials said: "Mayor Carfora and his administration have adopted stronger budgeting practices, leading to solid general fund operations in fiscal years 2021 and 2022. These accomplishments are in line with their goal of improving the town's financial position."

Management estimates that fiscal year 2023 will close with another surplus of $1 million, increasing reserves to above 8 percent of expenditures. The fiscal year 2024 budget is structurally balanced, and the town does not anticipate using reserves, thanks to favorable revenue and expenditure trends, officials said.

"East Haven's economic profile is stable, and Mayor Carfora's administration has introduced realistic budgetary assumptions, highlighting stronger financial management practices and procedures," according to Benivegna. "The positive outlook also acknowledges the town's low and manageable debt burden, thanks to Mayor Carfora's prudent financial management. Despite growing capital needs, East Haven is committed to seeking ways to fund and incorporate these into its capital planning."

Carfora said the positive rating from S&P Global Ratings is a "testament to the hard work and dedication of our town's employees, specifically Keeley, and the responsible financial management we have embraced during my time as Mayor."

"We are committed to maintaining this trajectory of fiscal responsibility and achieving long-term financial stability for our community," Carfora said.

The positive credit rating highlights East Haven's strong budgeting practices, solid financial performance, and a bright economic outlook, Benivegna said.

"It signifies a promising future for the town, driven by Carfora's commitment to disciplined budgeting and responsible governance," she said.