S&P Global Ratings Assigns East Haven A+ Bond Rating, 'Stable Outlook': Mayor Joseph a. Carfora

EAST HAVEN, CT — Mayor Joseph A. Carfora announced Wednesday that S&P Global Ratings has assigned its A+ long-
term rating to the Town of East Haven’s Series 2026A and 2026B General Obligation Bonds. It also affirmed the
town’s existing A+ rating on outstanding General Obligation debt. The rating secures a ""stable outlook" for the town.

"This rating is another independent confirmation that East Haven is being managed responsibly," Carfora said. "We have made difficult decisions, strengthened our reserves, invested in our infrastructure, and approached each budget with honesty and discipline. At a time when every municipality is facing rising costs, this stable outlook shows that East Haven is not avoiding reality; we are managing it."

Carfora said the S&P "noted the town's improved budgeting practices, stronger financial results over the past several years, and stable financial outlook."

The East Haven Town Council approved a $116.9 million budget for the 2027 fiscal year late last month. The final spending plan reduces the tax increase originally proposed by Carfora after the town identified new revenue and made "targeted adjustments" during the budget review process, according to town officials.

The approved budget totals $116,980,960, compared with $110,716,325 last year, representing an overall spending increase of approximately 5.6 percent, according to the town.

The adopted mill rate is 35.78 mills, up from 33.44 mills last year, an increase of 2.34 mills, or approximately 7 percent. The final rate is lower than the mayor’s original proposal, which called for a 2.81-mill increase before additional revenue and reductions were incorporated, according to the town.

Officials said the "budget was adopted without the use of fund balance, despite increased costs for employee benefits, debt service, education, special education, and other fixed obligations."

Town officials said that approach protects East Haven’s financial stability while preserving essential services.

"Our administration has worked hard to rebuild East Haven’s financial foundation, and this rating shows that those efforts are being recognized by outside professionals who understand municipal finance," Carfora said.

Town officials also pointed to the longer-term trajectory of East Haven’s bond ratings over the last decade.

Since 2011, East Haven’s S&P bond rating improved from BBB+ to A- in 2014, and then to A+ in 2016.

While the town’s rating was reduced to A in 2020 during a period of reserve pressure and broader fiscal challenges, S&P later revised the town's outlook before restoring and affirming the town's A+ rating with a stable outlook.

Officials said the rating history reflects "years of work focused on rebuilding reserves, improving budgeting
practices, reducing financial volatility, and approaching long-term obligations in a more disciplined and sustainable
manner."

that all said, the report also acknowledged challenges facing East Haven and many Connecticut municipalities, including rising health insurance costs, special education costs, debt service, pension and OPEB obligations, and limited
opportunities for large-scale tax base growth, Carfora said.

S&P’s stable outlook reflects its expectation that the town will maintain stable financial results and reserves, supported by its management practices.

"This does not mean the work is finished," Carfora said. "It means the work is being done. East Haven is honest about its obligations, careful with its spending, and focused on protecting the services residents depend on. That is
what responsible government is supposed to do."