New York State Comptroller Thomas DiNapoli has identified Yonkers, Wappingers Falls and Millbrook as three municipalities as being in fiscal stress as part of a statewide report.
Yonkers and Wappingers Falls were both rated to be in significant financial stress, while Millbrook was rated as susceptible to financial stress, according to The Fiscal Stress Monitoring System.
The comptroller’s report noted that these scores largely reflect the time period before the Covid-19 pandemic.
“These local communities were already struggling with fiscal stress before the pandemic hit,” DiNapoli said. “Some of that pressure could be alleviated with federal stimulus funds and the restoration of state aid, but the full extent of the pandemic”™s impact on local communities is unclear and the fiscal landscape continues to change. Local officials should remain vigilant in monitoring their financial condition.”
Across other parts of the state, two other cities ”“ Amsterdam and Long Beach ”“ and two other villages ”“ Island Park and Valley Stream ”“ were in significant financial stress. The village of Fayetteville was deemed to be in moderate fiscal stress. In addition to Millbrook, the villages of Addison, Oriskany and South Dayton were identified as susceptible to fiscal stress.
This round of fiscal scores is applicable only to municipalities with local governments that operate on noncalendar fiscal years, which can end between Feb. 28 and July 31, but primarily end in May or June. There were 523 villages and 17 cities evaluated, including Buffalo, Rochester, Syracuse and Yonkers. Municipalities with a calendar-year fiscal year were not included; those will be scored and reported in September.
The cities and villages identified as in some level of final stress ranging from susceptible to significant, 11 in total, were evaluated based on financial and environmental indicators.
Financial indicators, such as year-end fund balances, operating deficits and surpluses, cash position, short-term debt and fixed costs, help evaluate the municipality’s ability to generate revenue and meet its budget.
Environmental factors, such as population size and age, poverty levels, employment, tax limits and sales tax revenue, are included in the report to gain insight about trends that affect the municipality’s ability to gain revenue and meet demands for service. Overall numerical scores are assigned based on a combination of these two types of data.
The Fiscal Stress Monitoring System has been in place since 2012 and generates an annual score for all municipalities in the state based on yearly financial reports submitted to the state.
Last year in the region, Westchester County, Poughkeepsie, Clarkstown and Ramapo made the list.
The comptroller’s office also released a Fiscal Stress Monitoring System Report for school districts in the state in January of this year. Throughout Westchester and the Hudson Valley, the Mount Vernon School District was in significant fiscal stress and Wappingers Central School District was in moderate stress. The city of Poughkeepsie and East Ramapo school districts were deemed susceptible to fiscal stress.
