Contrary to recent criticisms, the town is not $17.5 million in debt-if this were true, the Town of East Haven would be in receivership by the State of Connecticut.

The fact is my administration has spent significantly less money than the amount budgeted each year I have been in office. The deficit was not created as a result of overspending, but rather the shortfall of projected revenue. Simply put, the town did not collect the amount of money it projected it would-which, by the way, is not unique to East Haven. Virtually every town and city as well as every state across the country is challenged by revenue shortfalls.

Let me put another mistruth to rest. Yes, the town finished in a $2.85 million deficit last fiscal year; however, we have included this amount in the current 2010-2011 annual budget. Therefore, and contrary to the rumor mill, this debt has been completely wiped out.

On the subject of fiscal responsibility, it was my administration that went before the Town Council and had it adopt a fund balance policy. We now have a formal policy in place that requires the town to maintain a minimum fund balance equivalent to five percent of its annual budget, so if the annual budget is $80 million, then the fund balance will have a balance of $4 million. Both Moody's and Standard & Poor's were extremely pleased by this undertaking. Once we achieve our goal with the fund balance, then we will do the same with the other self-insured funds, including the town's medical, workers' compensation, and excess liability.

As we all know, and as the saying goes, "The proof is in the pudding." To that end, I am attaching a copy of the letter I recently received from Tom Hamilton, chairman of the Municipal Finance Advisory Commission under the direction of the Office of Policy & Management [find this letter with this column at www.zip06.com]. Mr. Hamilton acknowledges the significant progress the town is making in improving its finances.

Clearly, this confirms East Haven is on the right track and, with the tireless help of my staff and the assistance of the Board of Finance and Town Council, I am completely confident the town will achieve financial stability and prosper for years to come.