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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

City of Long Beach - Financial Condition (2019M-133)

Released: December 11, 2019 -- [read complete report - pdf]

Audit Objective

Determine whether the Council and City officials adequately managed the City’s financial condition.

Key Findings

  • The City’s total general fund balance decreased 68 percent from $9.9 million at July 1, 2014 to $3.2 million as of June 30, 2018, leaving an unassigned general fund deficit of $813,994 at June 30, 2018.1
  • The Council issued $8 million of bonds from 2014-15 through 2016-17 and used another $2.1 million of fund balance in 2017-18 to finance recurring expenditures, increasing the general fund debt service costs to 12.27 percent of the 2017-18 revenues.
  • The City Manager has not prepared a multiyear financial plan including a fiscal improvement plan, in accordance with Local Finance Law Section 10.10(e).

Key Recommendations

  • Adopt structurally balanced budgets that contain realistic estimates of revenues and finance recurring expenditures with recurring operating revenues, instead of debt.
  • Prepare a multiyear financial plan including a fiscal improvement plan.

We conducted two separate audits of the City, one on financial condition and the other on leave accrual payments. The City submitted a response letter that addresses the findings in both reports.

City officials had some concerns about our findings. Appendix B includes our comments to both reports regarding City officials’ concerns.

Background

The City of Long Beach (City) is located in Nassau County and has a population of approximately 34,000. The City is governed by its charter, City Code and New York State laws. The five-member City Council (Council) has overall responsibility for the City’s operations, with the City Manager and other administrative staff having responsibility for overseeing and managing the City’s daily operations.

Quick Facts
2018-19 General Fund Appropriations$82.4 million
2017-18 Year-End General Fund Balance$3.2 million
2017-18 Year-End Unassigned General Fund Deficit($813,994)

Audit Period

July 1, 2014 – June 30, 2018


1 As per the City’s audited financial statements


Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.ny.gov
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236