Moody’s gives city stable credit rating

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Glen Cove’s credit outlook improved from negative to stable, according to a report released on Aug 2 by Moody’s Investors Service, a credit rating agency. 

The report states that the positive outlook is a partial reflection of the city benefiting from a growing tax base in Nassau County, and an improvement in serial bonds. Moody’s noted that new management in the city is working to bring the budget into balance and grow reserves. It also indicated that long- term liabilities are manageable and fixed costs are declining. 

Glen Cove has historically struggled to balance its budgets, resulting in years of negative fund balances, including the 2020 fiscal year. The improved credit also stems from ongoing large-scale construction projects such as Garvies Point, and the city’s capacity to generate revenue. 

“Due to the pandemic, the city’s state and local aid revenue was reduced,” said Glen Cove’s comptroller, Michael Piccirillo. “Therefore, when the 2021 budget was developed, it was done so conservatively insomuch as budgeting certain revenues, with the expectation that they would be lower than normal because of the impact of the pandemic on the city’s finances.”

According to Piccirillo, in 2021 the city’s state and local aid was restored to normal pre-pandemic levels. The city’s conservative budget practices aided in the city receiving more aid than was budgeted. Piccirillo added the excess amount had no offsetting costs, and therefor fell in line for an operating surplus for the 2021 fiscal year.