City Of Glen Cove: GREAT NEWS FOR GLEN COVE! MOODY'S HAS ONCE AGAIN UPGRADED GLEN COVE'S CREDIT RATING!!

Press release from the City of Glen Cove:

Rose Melillo

2023-05-22

GREAT NEWS FOR GLEN COVE! MOODY’S HAS ONCE AGAIN UPGRADED OUR CREDIT RATING.

Moody’s is one of the world’s best-known credit-rating agencies.

An improved rating is a sign that economic prospects have improved. Investors also keep a close eye on the ratings that Moody’s assigns to government and corporate bonds.

The improved outlook fiscally affects Glen Cove when we issue bonds for our capital borrowing needs. The better the rating the lower the interest rate we would receive in the bond market. A lower interest rate ultimately results in less interest to pay on the amount we borrow, so therefore, there is effectively less cost to our residents.

The last rating was a Baa2, with a Stable outlook. We were upgraded to a Baa2, with a Positive outlook.

Last time we earned a Positive outlook was in 2017 and was maintained until 2018 – see chart above.

The improvement to Positive, is primarily due to the City’s significantly reduced fund balance deficit which resulted from improved budgeting practices, fiscal discipline and aggressive oversight. Fiscal year December 31, 2022 ended with an operating surplus and helped to reduce the City’s accumulated deficit by approximately $3.5 million since our highpoint in 2020. Additionally, our long-term liabilities have decreased considerably compared to prior years.

The administration needs to continue producing structurally sound budgets and focus on controlling costs by eliminating non-essential spending and promoting efficiencies. We also need to focus on eliminating the deficit and ultimately building reserves so that we can continue to stabilize taxes and keep them at a manageable level for our residents.

No. Residents cannot purchase bonds individually. According to our bond advisor, we are only permitted to market and sell the City’s debt virtually exclusively to SEC and FINRA compliant institutions (banks, broker dealers, etc.).

This press release was produced by the City of Glen Cove. The views expressed here are the author’s own.