DERBY, Connecticut — State officials have placed the city of Derby under the strictest level of review following the disclosure that instead of having a $1 million surplus, it has a $1.9 million deficit, a nearly $3 million difference.
Officials with the Municipal Finance Advisory Commission, said in a letter Wednesday, "The City and the Board of Education were unable to explain the $3 million difference between the City's projection and the audited results.
The MFAC is an eight-member commission responsible for reviewing standards for municipal audit reports and working with any municipality, referred to it by OPM, to improve the fiscal condition of that municipality.
MFAC also noted that Derby's Chief Financial Officer position has been vacant for more than a year and no applications have been received to fill the position.
Officials also said the city has failed to address nine separate audit findings in the June 30, 2022 report that had been repeated over a number of years.
Designating the city as a Tier 1 municipality places Derby under strict state oversight. Conditions include the city's Chief Executive Officer must appear before MFAC to discuss the financial condition and the plans to improve. The city will also have to develop a five-year plan, and implement measures to correct unsound or financial practices.
The most recent municipality to be designated a "Tier 1" city is West Haven.
Doug Stewart is a Senior Digital Content Producer at FOX61 News. He can be reached at dstewart@fox61.com.
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