Purpose of Budget Review
The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the City’s preliminary budget for the 2018 fiscal year are reasonable, and whether the City took appropriate action on recommendations in our previous budget review issued in October 2016.
The City of Glen Cove, located in Nassau County, issued debt totaling $12.8 million to liquidate various accumulated fund deficits for the fiscal year ending December 31, 2006. New York State Local Finance Law requires all local governments that have been authorized to issue obligations to fund operating deficits to submit their proposed budget for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.
- The significant revenue and expenditure projections in the proposed budget are reasonable.
- City officials are projecting an operating surplus of $3.26 million in the general fund, a $38,615 surplus in the water fund and a $36,751 surplus in the golf and recreation fund. These three funds are projected to have a combined unassigned fund surplus of $448,951 by 2017 year end, a significant improvement from the previous year.
- The City has budgeted $1.96 million for building permit revenues, an increase of $53,000 over the 2017 estimate.
- City officials estimate $675,000 in termination payments, including $625,127 for employees retiring from the Police Department, and intend to use appropriated general fund balance to cover these costs.
- For 2017, the City projects an operating surplus of $38,615 in the water fund that will decrease the unassigned fund balance deficit to $141,641.
- For 2017, the City projects an operating surplus of $36,751 in the golf and recreation fund that will decrease the unassigned fund balance deficit to $369,649.
- City officials did not fully implement the recommendations in our prior budget review.
- The City’s proposed budget complies with the tax levy limit.
- Avoid using nonrecurring revenues or relying on fund balance to finance routine operations.
- Continue to monitor the financial position of the water fund and the golf and recreation fund, and implement a financial plan that provides for the gradual elimination of the fund deficits.