News From the Town of Colonie
Paula A. Mahan
Colonie Deficit-Free in 2011
Annual Financial Update Shows Fund Balance of $700,000
Newtonville, N.Y. –Town Supervisor Paula A. Mahan today announced that Colonie remained deficit-free in 2011 and that the Town ended the year with a fund balance in excess of $700,000 – the Town's first positive fund balance since 2005.
The information is contained in the Town's Annual Financial Report Update Document (AUD) for 2011, which was submitted to the New York State Comptroller's Office on April 27, 2012.
In 2011, an operating agreement with Waste Connections, Inc. for operation of the Town's landfill allowed the Town to eliminate $21 million of inherited deficit through fiscal year 2010. The 2011 AUD confirms that the Town subsequently accumulated no new deficit in 2011.
“When I took office in 2008, our major goal was to eliminate the Town's inherited deficit within ten years. We did so in four years, beating our own timetable. Now, our next big goal is to begin building much-needed financial reserves,” said Supervisor Mahan.
In other fiscal developments, Moody's Investors Services on April 23, 2012 issued a rating affirming Colonie's Baa1 bond rating and noting Colonie's improved financial position.
According to Moody's, the Baa1 rating reflects projected improvements in the Town's financial position, including “the return to positive fund balance in its Combined Operating (General, Highway, and Town Outside village) Fund.”
Moody's noted as strengths, the Town's recent positive financial performance, including revenue from the new landfill operating agreement, a stable tax base, and manageable debt levels.
Moody's also said that “continued improvement in financial operations resulting in improved reserve levels,” would help the Town further strengthen its bond rating.
The Town's AUD, submitted annually to the NYS Comptroller as required by law, contains financial statements prepared by the Town at the close of each fiscal year. It is separate from the audited financials prepared annually by the Town's independent auditors, Bollam Sheedy & Torani, which are generally released in the fall of the following fiscal year.
“We expect that the findings of the auditors will be consistent with the financials presented in our AUD,” said Supervisor Mahan.
“Finally, I am very proud to have achieved a $700,000 fund balance, the first positive fund balance since 2005. We will continue to monitor spending on a daily basis. By adhering to our financial plan and maintaining a fiscally conservative operation, I am confident we will see even greater progress ahead,” Supervisor Mahan said.