• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

West Haven Voice

West Haven’s only independent news source - By and For West Haven

  • Home
  • About Us
  • Archive
  • Advertise With Us!
  • Classified
  • Announcements
  • Contact Us
  • Web Exclusive
    • Kids Activity Pages

Deficit! FY17 audit in red

August 1, 2018 By whvoice

The city is, once again, in an operating deficit. That was the conclusion the city’s auditors came to when the much-delayed audit for the fiscal year that ended June 30, 2017 was released last week.

Mayor Nancy Rossi announced that the city finished fiscal year 2017, which ended on June 30, 2017, with a deficit of $1.4 million. The revelation means the city, which bonded $25 million for debt relief and some projects in the waning days of the O’Brien administration is once again writing its books with red ink.

The audit, which was produced by PFK O’Connor Davies, LLP of Wethersfield, was presented to the City Council at its last meeting on July 23. The $1.4 million deficit brings the city’s cumulative unassigned general fund deficit to $18.1 million.

The news was another blow to Rossi, who has had to deal with the aftermath of the decision to pay off the previous $16.1 million deficit, a decision that immediately put us under the scrutiny of the Municipal Accountability Review Board. The board was set up by General Assembly specifically for cities that had to bond to pay off debt.

Rossi said the deficit numbers are far greater than what she was led to believe when she took office.

“When I took office on December 3, 2017, the previous administration notified me that there would be another deficit for year ended June 30, 2017, but they expected it to be approximately $100,000,” she said in a press release sent out Tuesday. “Once the auditors began their work it became clear the deficit would be much larger. Obviously, I am not surprised–but I am disappointed for the city all the same.”

Mayor Edward M. O’Brien and the City Council approved deficit bonding in November 2017, in the amount of $16.1 million which was supposed to wipe out the cumulative deficit as of fiscal year 2016.

“The action of the deficit bonding triggered the oversight of the Municipal Accountability Review Board, (MARB). A municipality can only deficit bond once every 10 years,” she said..

The (MARB) passed a resolution on May 3 of this year, directing the city to eliminate the deficit with part of the restructuring funds. The budget presented to the City Council on March 15 did not have a city tax increase. Once the resolution was passed by the MARB the city was only allowed to use $6 million of the $8 million restructuring funds offered, while the remaining $2 million had to be used to pay off the deficit from 2017 and put aside $250,000 to cover MARB expenses.

“I knew the city had not fixed the budget problem and were running another large shortfall. I spoke at several meetings asking the (O’Brien) administration and City Council not to bond until they could produce a balanced budget,” Rossi said. “City Treasurer Michael Last testified at a budget hearing and sent an email to the Office of Policy and Management (OPM) in September 2017 asking them not to approve deficit bonding until the city could demonstrate that the budget was balanced. The requests fell on deaf ears and now we are saddled with yet another deficit and it’s a shame.”.

The audit did provide good news in that the sewer fund ran a surplus for the same fiscal year to help pay down the deficit carried in that fund.

“We still have a deficit in the sewer fund and I am working with the staff at the Water Pollution Control Authority and we are making decisions that will result in positive operations to eliminate the deficit and produce a cash reserve in the sewer fund,” she said.

Since the directive of the MARB came down in May, the city has had to trim its spending in various – and sometimes drastic – ways. Rossi admits the decisions have been difficult, and not easy to take by the public.

“We are looking at all the governmental funds and making good progress in streamlining operations and providing our services more effectively at a lower cost. Some of the necessary decisions have been difficult and some not very popular, but our financial issues did not happen overnight and they won’t be corrected overnight,” concluded Mayor Rossi.

 

Filed Under: 080218 Tagged With: audit, Budget, MARB

Primary Sidebar

Seach our site

Follow us on Facebook

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons

Historian's Corner ... See MoreSee Less

Link thumbnail

Historian’s Corner

westhavenvoice.com

Historian’s Corner May 21, 2025 By whvoice Leave a Comment The West Haven Veterans Museum on Hood Terrace is making an effort to acquaint city students and youth in the history of service in the cit...
1 week ago
View Comments
  • likes Like 1
  • Comments: 0
  • Shares: 0
Share
Share on Facebook Share on Twitter Share on Linked In Share by Email

0 CommentsComment on Facebook

Dear Felicia ... See MoreSee Less

Link thumbnail

Dear Felicia

westhavenvoice.com

Dear Felicia May 22, 2025 By whvoice Leave a Comment Howdy do, sweets! Hard to believe, but here we are at the downside of May, looking into the Memorial Day weekend already. Of course, like most thin...
1 week ago
View Comments
  • likes Like 0
  • Comments: 0
  • Shares: 0
Share
Share on Facebook Share on Twitter Share on Linked In Share by Email

0 CommentsComment on Facebook

Pollution plant needs leadership, $$$ ... See MoreSee Less

Link thumbnail

Pollution plant needs leadership, $$$

westhavenvoice.com

Pollution plant needs leadership, $$$ May 21, 2025 By whvoice Leave a Comment By Richard Hebert and Bonnie Posick Research by Kyle Rich West Haven residents have been vocal about the city’s revaluat...
1 week ago
View Comments
  • likes Like 0
  • Comments: 0
  • Shares: 0
Share
Share on Facebook Share on Twitter Share on Linked In Share by Email

0 CommentsComment on Facebook

HS Frosh cited by Mullins ... See MoreSee Less

Link thumbnail

HS frosh cited by Mullins

westhavenvoice.com

HS frosh cited by Mullins May 21, 2025 By whvoice Leave a Comment Steven R. Mullins presents his 10th annual awards to WHHS frosh Bibi Hadi. Steven R. Mullins presents his 10th annual awards to WHHS f...
1 week ago
View Comments
  • likes Like 0
  • Comments: 0
  • Shares: 0
Share
Share on Facebook Share on Twitter Share on Linked In Share by Email

0 CommentsComment on Facebook

Load more

 

 

West Haven’s Calendar

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
West Haven Calendar
2 years ago
West Haven Calendar

Thursday Night Live (This one's on Friday!!!)

... See MoreSee Less

Link thumbnail

Thursday Night Live (This one's on Friday!!!)

tockify.com

Fri 23 Jun, 7:00 PM - 9:00 PM [EDT]: Event by Milford Regional Chamber of Commerce, CT Old Grove Park Public · Anyone on or off Facebook West Haven summer concerts are back! Join us in West Haven thi...
View Comments
  • likes Like 0
  • Comments: 1
  • Shares: 0
Share
Share on Facebook Share on Twitter Share on Linked In Share by Email

1 CommentsComment on Facebook

West Haven Calendar
2 years ago
West Haven Calendar

Mark Your West Haven Calendar

tockify.com/west.haven.calendar/detail/442/1686776400000

Business After Hours West Haven Veterans Museum
... See MoreSee Less

Link thumbnail

Business After Hours West Haven Veterans Museum

tockify.com

Wed 14 Jun, 5:00 PM - 7:00 PM [EDT]: Business After Hours West Haven Veterans Museum West Haven Veterans Museum & Learning Center Event by Milford Regional Chamber of Commerce, CT West Haven Veterans ...
View Comments
  • likes Like 0
  • Comments: 0
  • Shares: 0
Share
Share on Facebook Share on Twitter Share on Linked In Share by Email

0 CommentsComment on Facebook

West Haven Calendar
2 years ago
West Haven Calendar

Added for June 10th & 11th

tockify.com/west.haven.calendar/detail/443/1686405600000

West Haven Historical Society Open House
... See MoreSee Less

Link thumbnail

West Haven Historical Society Open House

tockify.com

Sat 10 Jun, 10:00 AM - 3:00 PM [EDT]:
View Comments
  • likes Like 2
  • Comments: 1
  • Shares: 0
Share
Share on Facebook Share on Twitter Share on Linked In Share by Email

1 CommentsComment on Facebook

Load more

Footer

Address

West Haven Voice
840 Boston Post Road
West Haven, CT

 

Contact us

Call (203) 934-6397

Contact form

SITE NAVIGATION

HOME
ABOUT US
ARCHIVE
ADVERTISE!
CLASSIFIED
ANNOUNCEMENTS
CONTACT US
WEB EXCLUSIVE

FIND US IN PRINT

Our print edition is available each Thursday. Here is a list of locations!

Letters Policy

Information on submitting letters to us.

Our submission deadlines.

Copyright © 2025 West Haven Voice, LLC