The City of Stamford is reporting an $18 million surplus (excess of operating revenue over expenditures) for the 2020-2021 fiscal year.

The surplus is largely attributed to Stamford’s strong economy, responsible fiscal spending and management, and budget strategy.

“Despite the uncertain economic times we are living in as a result of the ongoing Covid-19 pandemic, Stamford’s economy continues to grow faster and stronger than ever,” said Mayor David Martin. “I am proud that Stamford has ended the fiscal year with such a substantial surplus that we can utilize to further improve our City.”

The City has submitted a request to the Board of Representatives and Board of Finance to approve the allocation of these funds for a variety of purposes including an increase in Stamford’s Rainy Day Fund, to increase and initiate Risk Management funds for future storm related costs and workers compensation costs, funding for Board of Education facilities, and City non-recurring capital projects.

“The City of Stamford has substantially outperformed budgetary predictions for the 2020-2021 fiscal year,” said Director of Administration Sandy Dennies. “This is in large part due to City departments, particularly the Department of Public Safety and Public Health, employing alternate business models to contribute significantly to the City’s savings.”

In addition to Stamford’s cost-effective economic strategy, one of the most significant reasons for the excess of revenue is due to the current year’s property tax levy being collected at a 97.5% rate, far higher than the anticipated 93.9%. Building permit revenue was also $5.7 million more than budgeted, and conveyance tax revenue was $6.3 million more than budgeted.

The $18 million surplus defies original budgetary plans that incorporated $33 million cash loss for the fiscal year, a figure that was based upon the potential impacts of the Covid-19 pandemic. This cash shortfall was originally to be covered by the use of rainy day funds and short-term borrowing.  Instead, expenses were less than the budget plan and revenues were higher, resulting in the $18 million surplus.