Moody’s Ratings upgrades to Baa1 from Baa2 the issuer rating and general obligation limited tax (GOLT) rating on the City of Glen Cove. Concurrently, Moody’s assigns Baa1 to the estimated $5 million Public Improvement Serial Bonds -2024.
According to Moody’s, “…The upgrade to Baa1 from Baa2 is reflective of structurally balanced budgets that have significantly grown reserves. While the reserves remained negative at the end of fiscal 2023, fiscal 2024 is already trending positively and a return to positive fund balance will likely occur over the next two years.”
Mayor Pamela Panzenbeck and City Controller, Michael A. Piccirillo, continue to significantly improve the City of Glen Cove’s financial condition over the past several years by creating structurally balanced budgets and continuing to focus on eliminating non-essential spending and promoting efficiencies.
“I am extremely pleased with Moody’s credit rating upgrade to Baa1. When I took office, the City had a rating of Baa2 with a Negative outlook,” said Mayor Panzenbeck. “After our first credit review, we were upgraded to a Stable Outlook and then the review last year, we were upgraded to a Positive Outlook. And now, an actual credit rating upgrade to Baa1. This is all independent evidence of me diligently working with my controller to improve and change the course of the City’s financial condition. The City is continuing to conservatively budget revenues and expenses while stabilizing taxes for our residents and our debt position continues to be manageable.”
“This upgrade reflects a significant improvement in the City’s financial condition. We’ve had three consecutive years of operating surpluses totaling approximately $5 million and now have an overall positive operating fund balance for the first time since 2016,” said Controller Piccirillo. “Although the City’s Unassigned fund Balance has a slight negative position of approximately $445,000, we have significantly reduced this from a low point of negative $5.4 million back in 2020. This deficit has been tremendously reduced through improved budgeting practices, fiscal discipline, and aggressive oversight. Also, just a little history to understand how significant an achievement this is. The City was last assigned a Baa1 rating 15 years ago in June 2010, and then a year later in 2011 was downgraded to Baa3 and stayed at that rating for the next 7 years until it was upgraded to Baa2 in April 2017. We have remained at Baa2 for the past 7 years, until now, when we have been upgraded to Baa1, which is just below an A credit rating and certainly within our reach as we continue to achieve positive results.”
—Submitted by the City of Glen Cove
