Moody’s Upgrades Glen Cove’s Outlook to ‘Positive’

Moody’s Investors Service released its latest fiscal evaluation of Glen Cove and upgraded the City’s outlook from “stable” to “positive.”

Moody’s is a provider of credit ratings, research, and risk analysis. The company gave the City a Baa3 rating and commented on the City’s financial strengths.

The “positive” outlook is in response to the changes expected to be made to the fund balance following the sale of the City’s waterfront. Through this purchase, the City says it expects to have non-negative operating fund balance for the first time since the issuance of its deficit financing bonds.

Mayor Reggie Spinello said:

“My administration has worked diligently to improve the City’s financial strength through exercising rigorous standards, pinpointing new revenue streams and executing cost savings programs. I am very pleased that Moody’s analysts recognized our improvements, best practices and our commitment to stimulate new economic growth. We are also continuing to tackle long-standing budget issues like the long-term debt that has accumulated on the City’s books for more than 20 years and focusing on reducing our fund balance deficit by using the new revenues generated by the waterfront project.”

The City says its waterfront development would add 56 acres of formerly blighted property back to the tax rolls.

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Many residents are actively protesting this waterfront property and more than one lawsuit has been filed against it.

The City says the following credit strengths were highlighted by Moody’s:

• Improved budgeting practices in 2015 which led to a General fund surplus of almost $1 million.
• Projected elimination of deficit fund balance position across operating funds at the end of fiscal 2016.
• Waterfront development expected to provide increase to tax base and economic activity.
• Large and diverse tax base.