Long Beach On Rough Financial Footing Ahead Of Budget Talks

The City of Long Beach is in the most dire financial straights of any municipality in the state, and it could mean increased taxes for residents this year.

Late last month, State Comptroller Thomas DiNapoli's office updated its Fiscal Stress Monitoring System in late March. And though Long Beach was on a path to fiscal recovery last year, the city's finances took a dip. It is now the most at-risk municipality in the state, with a stress score of 80.8 out of 100. It was followed closely by the nearby Village of Island Park, which scored a 78.3.

The city's finances were scrutinized by the comptroller, and they found that the city's small fund balance and operational deficit hurt its score.

This is the fifth year DiNapoli's office has assessed levels of fiscal stress in local governments. Using financial indicators that include year-end fund balance, cash position, short-term borrowing and patterns of operating deficits, the comptroller's monitoring system creates an overall fiscal stress score.

According to Newsday, the city said that it is still waiting for reimbursement from the state and FEMA for Sandy-related reconstruction, which negatively impacted its standing in the report.

However, the city's 2019 budget talks are looming, and cuts to services, as well as tax increases, may be in the cards. The exact changes to the budget won't be known until the City Council begins budget negotiations next month.

Photo: Patch