Report: Village Finances in ‘Perfect Shape’

The Village of East Hampton is once again the recipient of an upbeat assessment of its fiscal health.

Michael Tomicich, director of governmental services at the accounting firm Satty, Levine, and Ciacco, reported his firm’s unqualified, or clean, opinion to the village board at its work session last Thursday.

“This means the financial statements present fairly the financial position of the governmental activities and each major fund of the village” as of July 31, the end of its fiscal year, he said.

In the fiscal year ending on July 31, revenues of $21.716 million exceeded budget projections by $1.654 million, with license and permit fees, fines and forfeited bail, and state and federal aid accounting for most of the difference, Mr. Tomicich said.

Expenditures were $21.079 million. “Most expenditures were less on each line” in the budget, he said. As a result of lower-than-projected expenditures and higher-than-projected revenues, the village was able to move $500,000 into its employee benefit reserve fund, Mr. Tomicich said, and transfer an additional $1.2 million to the capital projects fund.

The village’s unassigned fund balance is $5.796 million, $268,000 more than last year, Mr. Tomicich told the board. The village has a “very strong” unrestricted cash position of $6.586 million, he said. Restricted cash, which is reserved for capital projects and employee benefits, totaled $642,555.

The village lowered its debt by $850,000 in principal payments, which reduced the current serial bonds outstanding as of July 31 to $6.635 million, he said. Payments to retirees for health insurance last year totaled $611,462, with a total liability for postemployment benefits of $4.879 million over the next 30 years.

“We noted no transactions entered into by the village for which there was a lack of guidance. . . . There were no disagreements with management, and no difficulties encountered with the audit, as usual,” Mr. Tomicich said. Nor did his firm identify any deficiencies in internal control or financial reporting. “The village received clean opinion, and you’re in perfect shape,” he said.

“This is a compliment as to how the village conducts itself vis-a-vis fiduciary and fiscal matters,” Mayor Paul F. Rickenbach Jr. said at the conclusion of the presentation. He acknowledged Becky Molinaro, the village administrator, and accounting personnel. “We have always attempted to be very mindful of tax dollars as they’re derived, and other avenues of income, trying to put back out to the public we serve the very best product we can,” he said.

Also at the meeting, Ms. Molinaro told the board that LTV has agreed to film and broadcast meetings of the village’s planning and design review boards. The board had recently renewed the village’s contract with LTV but hoped to add coverage of those groups. In order to accommodate audio and video recording, the design review board will move its meeting site from Village Hall to the Emergency Services Building.