The Village of Manorhaven has been given a big vote of confidence from the world’s largest credit ratings agency.
Standard and Poor’s Corp. (S&P) upgraded Manorhaven’s financial rating from “credit watch, with negative implications” to “A+,” one of its best ratings.
The ratings upgrade comes after months of accusations of financial mismanagement and questionable financial reporting practices from a cadre of residents led by Jim Avena.
Mayor Giovanna Giunta said, “We have constantly worked over the last two years toward finding ways of improving not only our fiscal foundation but also the quality of life for all of our residents. We are happy the S&P rating is reflective of these initiatives.”
Alex Ortolani, a representative with S&P, told Port News the A+ rating indicates S&P believes the financial picture for the village will continue to improve, especially in light of the balanced budget for 2015.
According to the report, “The ‘credit watch’ removal and stable outlook reflect our view of the village’s improved financial metrics as reported in the most recent unaudited annual update for fiscal year end May 31, 2014.”
The village finished its fiscal year with a surplus of $185,000 that contributed to a modest general fund balance of $152,000.
Village Clerk Leslie Gross noted that the mayor and trustees worked very hard to stabilize the village finances after the disastrous consequences of Superstorm Sandy.
According to Gross, there were many steps in moving the village toward stable financial ground. The village has applied for and received more than $1 million in grants and reimbursements. Several new grants are in the planning stages.
“We are constantly enacting cost saving measures to include new sanitation contracts saving $132, 000 yearly, the creation of volunteer positions, new credit procurement policies and transparent record keeping. We are providing for Manorhaven’s financial future by putting in place a three year capital plan, and we have worked diligently to pay off the debts of preceding administrations,” said Gross.
If anyone thought the S&P report would change the tone of the discourse in the village they would be wrong. Avena isn’t giving an inch. When asked to comment on the upgraded rating he said: “It is unfortunate that S&P doesn’t measure overall competence of a village government. Earlier this year, because the village had not submitted even the bare minimum level of financial information to the rating agency, S&P changed its outlook for the village’s credit rating to negative. Now that the village has submitted an unaudited financial statement for the year ending May 31, 2014, S&P changed their outlook back to neutral, affirming the pre-existing A+ rating.”
The positive report did indicate that the budgetary flexibility of the village is weak because it had used general fund reserves for non-recurring expenditures during the fiscal year ended May 2013. However, the receipt of non recurring grant money in 2014 enabled the village to end fiscal 2014 with the $152,000 general reserve fund.
In response to Avena’s continued criticism, even in the face of the positive S&P report, Giunta told Port News, “We have made positive strides and will continue to so. It is time for Mr. Avena to acknowledge our good leadership and success.”
