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2011-12 Surplus to Shore Up Fund Balance

With a bit over $1 million left from the last fiscal year, the extra funds will go into the flailing fund balance rather than the practically depleted pension fund.

 

After all was said and done, the town finished the 2011-12 fiscal year with a surplus of more than a million dollars, according to its new finance director Sal DeCola.

The $1,001,689 surplus will go into the general fund, DeCola said, bringing its total to about $1.5 million, far below the goal of $10 million, or 5 percent of the operating budget that the auditors recommend.

But it's a start, DeCola said.

"We should be very proud to end the year with those numbers," he said.

The fund balance is something that is crucial to bond rating agencies, he said, so it's imperative that the town show an effort to rebuilt it. With the town's $200 million operating budget, it should have a $10 million fund balance, but it has been severely depleted over the past several years to almost nothing.

Some on the Legislative Council questioned the wisdom of not putting the money into the Pension Fund, which also is in crisis mode. But since the possibility of Pension Obligation Bonds is being seriously considered, it's preferable to put the surplus in the fund balance, DeCola said.

"Every step we take there helps," he said. "The ratings agencies are very, very strict and they know we are working on it."

cheryl September 27, 2012 at 02:25 PM
A) why was it depleted- what were the expenditures? Just Legacy cost? or other line items? Looks like our taxes are going way up next yr.
Thomas Alegi September 27, 2012 at 02:33 PM
How did this $1,001,689 surplus come about? Could it be that Hamden taxpayers have just waitnessed a sleight-of-hand Shell Game being played for the past 5 months or so.
George Levinson September 27, 2012 at 02:51 PM
The million should have been used to eliminate the retirement incentive program. That program added millions to the long term pension payments for those lucky 25 individuals. Putting a "paltry" million into the pension fund would have been inconsequential, considering it is about 250 million short. The pension fund will never be fully funded. The taxpayers can only hope that the administration will extract concessions from the unions to match any funds added through bonding. The mayor kicked the can down the road by ordering another actuarial study. The outcome of the study won't change anything.
Thomas Alegi September 27, 2012 at 06:44 PM
If the pension fund will never be fully funded, why are some people thinking about kicking the can down the road to our children, by bonding the pension fund? We all do not like paying more in taxes than what we have too. With that said, it would be more prudent to cut some areas of the town budget, for the next few years, and take those saving and apply those savings to the pension fund. Below are some of the alternative thinking to bonding the pension fund that Hamden taxpayers have voiced. 1) Cut department head salaries, including mayor's salary 2) Cut the BOE budget 3) Cut none priority town projects 4) Actively seek state and federal funds 5) Actively seek funds for education from corporate America 6) Replace town property taxes with a town sales tax.
cheryl September 28, 2012 at 01:32 PM
You have a governor and mayor in lock step with BHO and his policies. That seem like the plan to bankrupt America and it starts with local governments. As we pay 27% to the corrupt UN and now thru our property taxes we are contributing to the UN- ICLEI programs that Henrici and LC signed Hamden on to. Why should the UN DICTATE AND MANDATE rules to Hamden. Never mind the outrageous costs Hamden has for local gov employees. If you keep voting for these people you are going to get the same outcome. You say you want a budget, you say to CUT spending inc. gov salaries but then that mindset doesn't apply to the federal gov. You seem to want state and federal funds and funds from corportations, well if you want federal fund that means the federal government need to TAX more, but then you don't want your taxes increased, you say you want corporation to pay more, but our corporate taxes are highest in the world, and that inhibits trade and competition. You talk about pension funds yet- you are pro unions. Why are you complaining. This is what you always vote for.

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