(September 23, 2013) – Mayor Segarra and the Office of Management and Budget today announced that the City of Hartford will close its Fiscal Year 2012/13 with a surplus of $803,848 which will be added to the City’s Fund Balance or Rainy Day Fund. Numbers are preliminary and remain subject to review by the external auditors. The city has also made an $11 million payment to the Municipal Employee Retirement Fund (MERF) in response to an “off-budget” agreement between the City and the Pension Fund. The payment covers the entire amount due, fully meeting the City’s obligation to fund the pension for Fiscal Year 2012/13. This represents Hartford’s fourth consecutive year of undesignated General Fund balance growth under the Segarra administration.
The surplus is due in part to continued improvements in overall tax collections, which exceeded the operating budget this year by an estimated $6 million, the result of new approaches and strategies for tax payers to bring their accounts up-to-date.
“It’s becoming increasingly difficult to not raise taxes, remediate multi-million dollar deficits while keeping acceptable or improved level of services for our residents,” said Mayor Segarra. “We’ve continued to increase our Fund Balance and even raised an additional $11 million to meet our pension obligation. It’s tough for cities across the state and the nation and we’ve had to make real sacrifices but I made a commitment to have a balanced budget that would not further burden our tax payers. And that’s what we’ve done.”
The following is a chart demonstrating the annual increase/decrease to the General Fund from Fiscal Year 2005/06 to current.
For more information on the FY 2012-2013 Financial Report check here: http://www.hartford.gov/images/budget/FY12-13_financial-transaction-report-memo.pdf
For Immediate Release: September 23, 2013
Contact: Maribel La Luz