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Overcast State fiscal report says village finances improved
Village officials said last week that Malverne received a favorable financial rating from New York State Comptroller Thomas DiNapoli’s Fiscal Stress Monitoring system, which annually evaluates the financial health of hundreds of villages across the state.
The village had a “no designation” stress level — the study’s best rating — thanks to an increase in its fund balance, which at the end of 2015 was $2.04 million, or 13 percent of its gross expenditures of just under $15.9 million.
In 2014, the village had only $486,787 in its fund balance, which was only 3.1 percent of its gross expenditures.
The state report bases 50 percent of its stress evaluation on fund balance, and if it falls below 10 percent of a village’s gross expenditures, it accumulates points toward an evaluation of poor fiscal health. With its low fund balance in 2014, Malverne was assessed the maximum 3 points.
The full, state-wide fiscal stress report is expected to be released by the comptroller’s office shortly, and will be available online at www.osc.state.ny.us.
Malverne also improved in the report’s operating deficit category, showing a surplus of $935,528 — 6 percent of its gross revenues of $16.6 million — in 2015. The year prior, the village had a deficit of $668,027 and gross revenues of $14.8 million. The deficit was due in part to a one-time settlement payment of $800,000 to New York American Water Company as the result of litigation over the assessment of water pipes.
Malverne Mayor Patti McDonald commented that she was pleased that the village had a surplus. “Every department came together to watch the money being spent,” McDonald said, adding that the surplus has been set aside for unforeseen emergencies and unexpected expenses.
