East Haven Closes Out Budget Year With $409,000 Surplus

EAST HAVEN, CT - Mayor Joseph Maturo, Jr. announced today that initial closeout figures indicate that East Haven closed the 2017-2018 fiscal year with a $409,376.00 dollar operating surplus.

Maturo said, "This past budget was, without a doubt, the most difficult in my 17 years as Mayor due to the loss of over $1.2 million dollars in funding from the State of Connecticut under the State's "Municipal Revenue Sharing" and "Circuit Breaker" programs.”

According to the Finance Department's final projections, revenue for the '17-'18 fiscal year totaled $87,751,071.00 million and total expenditures, including the Board of Education, totaled $87,341,695.00 million, resulting in an operating surplus of $409,376.00. The projected $409,376.00 dollar surplus will be credited to the Town's rainy day fund, raising that fund from $5.43 million to $5.84 million dollars, its highest level since 2007.

Maturo continued, "Given the State's dismal fiscal climate and the unpredictability of state funding, it has been more difficult than ever to maintain a balanced budget. This past budget year, our community lost $357,240.00 in state funding for the "Circuit Breaker" program for our seniors and $854,319.00 in "municipal revenue sharing funding" which subsidizes a host of local initiatives. However, despite losing that funding, we didn't eliminate programs. We tightened our belts, found savings in other departments, and stepped in to make up the $1.2 million dollar shortfall from the state.”

Town Finance Director Paul Rizza noted, "National credit rating agencies like 'Standard and Poor's' generally recommend that municipalities maintain a minimum fund balance of no less than five percent (5%) of their operating budgets. The gold standard in today's rocky municipal environment is ten percent (10%). The Town's $5.84 million dollar fund balance represents 6.37% of our operating budget, putting our community well on its way to reaching that 10% 'gold standard.'"

Maturo cautioned that additional state cuts could present budgetary challenges in crafting the 2019-2020 budget.

"As we turn our attention to crafting the 2019-2020 budget, we're going to be looking long and hard at our state aid figures to ensure we budget appropriately."