City In Glen Cove Is Down From Moderate To Susceptible Fiscal Stress Per State Comptroller Report

Glen Cove Record Pilot

Twice a year, New York State Comptroller Thomas P. DiNapoli releases the fiscal scores of municipalities and school districts. Reports within the past three years have shown the City of Glen Cove to be in moderate fiscal stress. But the latest report, released on Sept. 27, finds that the city is susceptible to fiscal stress.
Glen Cove is among the 20 local governments ending fiscal year 2021 designated in some form of fiscal stress, down from 30 a year ago.
“The infusion of aid from the federal government and robust local sales tax revenues helped to put local governments on solid fiscal ground in 2021,” DiNapoli said. “Still, municipalities shouldn’t assume this will last. Inflation remains a major concern and sales tax growth is slowing in many areas. With the end of extraordinary federal aid, and a possible recession looming, local governments need to plan carefully to avoid fiscal cliffs in the future.”
The state comptroller uses a method called the Fiscal Stress Monitoring System, which was developed and launched in 2013, to “evaluate fiscal stress from a budgetary solvency perspective and provide a score to reflect the ability of a local government or school district to generate enough revenues to meet expenditures,” according to the Fiscal Street Monitoring System manual. Financial and environmental indicators the system uses to measure fiscal stress includes fund balance levels, operating deficits, cash on hand, fixed costs and short-term cash flow borrowing; as well as tax base and population growth, reliance on state and federal revenues, poverty levels.
The system has three categories of fiscal stress; significant stress, moderate stress and susceptible to stress.
The system weighs individual indicators, such as year-end fund balance, operating deficits, use of short-term-cash flow, cash position and fixed cost, according to their relative importance. An entity’s performance on each of these indicators is evaluated on a 100-point scale, with the sum of the points yielding the overall fiscal stress and environmental stress score.
Local Government Fiscal Stress
Significant Fiscal Stress: 65-100
Moderate Fiscal Stress: 55-64.9
Susceptible to Fiscal Stress: 45-54.9
No Designation: 0-44.9
Two years ago, the City of Glen Cove received a score of 60, and then 61.7 the following year, meaning the city was in moderate fiscal stress. Currently the City of Glen Cove has a score of 50.4, meaning the city is in susceptible fiscal stress.
“My administration and I will continue to maintain proper budgeting practices, continually address deficit fund balances with the intent of growing reserves, maintaining services, eliminating non-essential and wasteful spending, and implementing new sources of revenue to continually improve the city’s financial condition and ensure the stabilization of taxes for years to come,” City of Glen Cove Mayor Pam Panzenbeck said.

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