The following is a press release from the East Haven Mayor's Office.
Mayor Joseph Maturo, Jr. announced today that the Town received the official audit for the 2011-2012 fiscal year, which confirms that the Town ran a surplus of $237,000.00 for the past fiscal year and reduced its long-term debt by almost $3.6 million dollars.
Maturo explained, “I am proud that my team and I were able to cut spending, reduce borrowing, and produce a surplus for the people of East Haven.”
According to the audit, the Town had total revenues of $85,313,750.00 and total expenditures of $85,089,676.00. The Town also saw a small positive transfer of $12,969.00. The end result was a yearly surplus of $224,074.00.
As a result of the yearly surplus, the Town’s running fund balance, or rainy day fund, increased from $200,800.00 to $437,843.00.
Maturo continued, “After just one year in office, we managed to reduce our long term debt by 7.5%. Further, despite several budget irregularities created under the previous administration, including shortages in accounts for water, natural gas, sewer use, unemployment, and retirement payouts, the Town ran a surplus and doubled its rainy-day fund – known as the fund balance.”
Just eleven days after taking office, Maturo initiated a town-wide spending freeze, which continued for seven months through June of 2012.
Maturo explained, “Immediately upon coming into office, we worked to reduce unnecessary spending and increase revenue. The Town accomplished both goals, as it also saw an increase in revenue from delinquent tax collection. These decisions contributed significantly to the Town’s surplus.”
According to the audit, the Town maintains a credit rating of A3 from Moody’s, a rating which the Mayor would like to see improve.
Maturo explained, “Like any individual, the Town has a credit rating, which had slipped to a ‘Baa1” grade, or ‘non-investment grade,’ between 2008 and 2010. Our reduction of long-term debt will help us make a case for a better credit rating, which will save our residents money if we look to borrow in the future.”
Maturo concluded, “As a result of our efforts to limit spending and reduce our debt, we have begun to put East Haven back on the right track. Moving forward, we will continue to practice common sense budgeting so that we can build a better, brighter, and more financially stable community for years to come.”