Glen Cove comes off state comptroller's financial 'stress' list for first time since 2017
New York State Comptroller Thomas DiNapoli. Credit: Hans Pennink
The New York State Comptroller's Office has removed Glen Cove from its annual fiscal stress list for the first time since 2017 and only the second time in the past 12 years.
Glen Cove and the Village of Huntington Bay were the only two Long Island municipalities on the state’s fiscal stress list for the fiscal year ending 2022. Both were considered "susceptible" to fiscal stress for that span. Glen Cove was removed from the list, while Huntington Bay was not included in the latest report because it did not file its annual financial report in time.
Glen Cove officials said tightening spending and improving finances for the long term helped change their outlook.
Glen Cove Controller Mike Piccirillo said a third consecutive year of a surplus in the city’s operating budget was the "key indicator" that caused the change. Glen Cove ended with a $1.51 million surplus last year, following a $1.49 million surplus in 2022 and $1.97 million surplus in 2021, Piccirillo said.
"It’s like a net profit," Piccirillo said. "We brought in more revenue than we spent in expense."
Glen Cove Mayor Pamela Panzenbeck said the city aims to both spend and borrow conservatively to maintain the no-stress designation. Earlier this year, Moody’s Ratings upgraded Glen Cove’s credit rating, though some city officials expressed concern that the city still faces significant financial challenges.
"We do believe that it shows all of the residents, the taxpayers, that we are moving forward in the right direction," Panzenbeck said.
New York State Comptroller Thomas DiNapoli publishes the annual assessment as an "early warning of fiscal stress to local governments and school districts by examining their financial information and aspects of their external environment," according to the report.
Municipalities are scored on nine separate indicators and have to receive a score under 45 to be classified as "no designation," which indicates the comptroller's office had no financial concerns. Those indicators include operating deficits, debts and the ratio of cash to liabilities.
"Glen Cove has made strides to improve their fiscal situation, and they should continue to closely monitor their finances to ensure that progress continues," said Mark Johnson, a spokesman for DiNapoli's office.
Glen Cove Councilwoman Marsha Silverman said that the city should not rely on one-shot revenues, such as pandemic relief aid.
Because American Rescue Plan Act funding does not recur, Silverman said, "current spending levels will not be sustainable ..."
Huntington Bay Mayor Mark Dara, who took the role in July, said the previous administration did not submit the necessary documents to be included in the audit. Still, he said the village has recently cut excess spending and is making some progress on improving its financial standing.
"I’m hitting singles now," Dara said. "It’s the best I can do. There’s no home runs to be hit at this point."
This summer, Dara said, the village had a deficit that has since flipped. He estimates Huntington Bay will have about $80,000 in surplus this month.
However, to reach a point where the village has 10% of its budget in reserves — an indicator of financial health — "it’s probably going to take us two years to get that done," he said.
A total of 14 municipalities statewide were considered to be under some level of fiscal stress. Meanwhile, 18 villages — eight in Nassau County and eight in Suffolk County — either did not file their annual financial reports in time to be included in the audit or submitted inconclusive data.
The New York State Comptroller's Office has removed Glen Cove from its annual fiscal stress list for the first time since 2017 and only the second time in the past 12 years.
Glen Cove and the Village of Huntington Bay were the only two Long Island municipalities on the state’s fiscal stress list for the fiscal year ending 2022. Both were considered "susceptible" to fiscal stress for that span. Glen Cove was removed from the list, while Huntington Bay was not included in the latest report because it did not file its annual financial report in time.
Glen Cove officials said tightening spending and improving finances for the long term helped change their outlook.
Glen Cove Controller Mike Piccirillo said a third consecutive year of a surplus in the city’s operating budget was the "key indicator" that caused the change. Glen Cove ended with a $1.51 million surplus last year, following a $1.49 million surplus in 2022 and $1.97 million surplus in 2021, Piccirillo said.
"It’s like a net profit," Piccirillo said. "We brought in more revenue than we spent in expense."
Glen Cove Mayor Pamela Panzenbeck said the city aims to both spend and borrow conservatively to maintain the no-stress designation. Earlier this year, Moody’s Ratings upgraded Glen Cove’s credit rating, though some city officials expressed concern that the city still faces significant financial challenges.
"We do believe that it shows all of the residents, the taxpayers, that we are moving forward in the right direction," Panzenbeck said.
New York State Comptroller Thomas DiNapoli publishes the annual assessment as an "early warning of fiscal stress to local governments and school districts by examining their financial information and aspects of their external environment," according to the report.
Municipalities are scored on nine separate indicators and have to receive a score under 45 to be classified as "no designation," which indicates the comptroller's office had no financial concerns. Those indicators include operating deficits, debts and the ratio of cash to liabilities.
"Glen Cove has made strides to improve their fiscal situation, and they should continue to closely monitor their finances to ensure that progress continues," said Mark Johnson, a spokesman for DiNapoli's office.
Glen Cove Councilwoman Marsha Silverman said that the city should not rely on one-shot revenues, such as pandemic relief aid.
Because American Rescue Plan Act funding does not recur, Silverman said, "current spending levels will not be sustainable ..."
Huntington Bay Mayor Mark Dara, who took the role in July, said the previous administration did not submit the necessary documents to be included in the audit. Still, he said the village has recently cut excess spending and is making some progress on improving its financial standing.
"I’m hitting singles now," Dara said. "It’s the best I can do. There’s no home runs to be hit at this point."
This summer, Dara said, the village had a deficit that has since flipped. He estimates Huntington Bay will have about $80,000 in surplus this month.
However, to reach a point where the village has 10% of its budget in reserves — an indicator of financial health — "it’s probably going to take us two years to get that done," he said.
A total of 14 municipalities statewide were considered to be under some level of fiscal stress. Meanwhile, 18 villages — eight in Nassau County and eight in Suffolk County — either did not file their annual financial reports in time to be included in the audit or submitted inconclusive data.
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