Friday, 08 April 2011 00:00
In a recent letter (“The Numbers Don’t Lie”), I urged those interested in the true state of Glen Cove’s finances to read the City’s Deficit Reduction Plan and the State Comptroller’s response, instead of relying on Newsday’s coverage or Mayor Suozzi’s spin thereon (“Good News About Glen Cove Finances”).
On March 22, Moody’s Investors Service apparently did just that, downgrading the city’s bonds to its lowest investment grade rating, Baa3, and assigning the bonds a “negative outlook.” In explaining its action, Moody’s noted the city’s still existing accumulated deficit, as I had in my letter.
This, of course means that it will now cost the city even more to finance the millions of dollars that it borrows each year.
Although I am distressed by this independent confirmation of Glen Cove’s financial condition, I am even more distressed by the administration’s misleading depiction of the state thereof. How can we ever expect the city’s finances to improve if those who control them won’t even acknowledge there is a problem?
Paul L. Meli