There is no need to wait for the Tax Board meeting on Oct, 18 to get a resolution to the question surrounding Derby’s Fund Balance.
All it took was a phone call and a visit to my home and Treasurer Keith McLiverty alleviated all uncertainty surrounding the Fund Balance.
For those waiting for Oct. 18, wait no longer.
The statement of revenues dated June 30, 2009 indicates a Fund Balance of $1,528,421 while the appropriation summary later indicates a $1.75 million settlement payout to Ceruzzi.
McLiverty explained that Ceruzzi had brought a $3 million suit against the City of Derby prior to June 30, 2009. That said, when the independent auditors compiled their figures, they were required to remove the entire $3 million from Derby’s Fund Balance, assuming a worst-case scenario against the city.
Therefore, that $3 million was taken from the June 30, 2008 Fund Balance, which contained $3,343,922. So had the full $3 million been lost to Ceruzzi, Derby would have been left with approximately $300,000 in their Fund Balance.
However, despite the document being dated June 30, 2009, the audit was not official until the end of December 2009.
Consequently, when the Board of Aldermen voted on October 22, 2009 to settle with Ceruzzi for $1.75 million, the independent auditors now had a definitive settlement figure and subsequently changed the figure they originally removed from the Fund Balance from $3 million to $1.75 million.
As a result, the Fund Balance should contain approximately $1.5 million today, which is still considerably less than the estimated $5 million from just 5 years ago.
As you can see, the above is a rather simple explanation that did not take more than 10 minutes for McLiverty to explain to me. Yes, it was unfortunate that it took the route that it did to get a precise answer. But this question would have remained unanswered otherwise.
McLiverty has served the City of Derby as Treasurer for many years and through many administrations. It is understandable why he is elected time after time.
For those who feel my questioning of the Fund Balance was “politically motivated,” please go back and re-read my initial commentary. Other than Mayor Staffieri, the only other names mentioned were Carolyn Duhaime and Henry Domurad. Henry Domurad is a Democrat.
As for Ken Hughes responding with a commentary of his own, I appreciate and applaud him for finally initiating a response to my questions from the Chairwoman of the Tax Board.
This was not a witch hunt or a plot to embarrass anyone. It was simply a public attempt to get the answers to the questions that have been previously been discounted and disregarded. As a result, answers have been provided.
Next item … for those that have displayed so much interest in the good of the City of Derby, let’s please still attend the Oct. 18 meeting to support the approval of the canine unit to the Derby Police Department.
Editor’s Note: Rob Hyder is a lifelong Derby resident. He ran for Third Ward Aldermen in 2009 as a Democrat. The views and opinions expressed here are his own.
