City receives impressive fiscal stress score

By CLOEY CALLAHAN
Posted 10/14/20

The City of Newburgh received a fiscal stress score of zero, on a scale of zero to 100, meaning the City achieved the lowest and best possible score during the fiscal year ending in 2019.

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City receives impressive fiscal stress score

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The City of Newburgh received a fiscal stress score of zero, on a scale of zero to 100, meaning the City achieved the lowest and best possible score during the fiscal year ending in 2019.

The fiscal stress score is a marker of how much current or anticipated financial stress residents have in the area.

“For years, with various people, and for various reasons, the City of Newburgh was mismanaged,” said Councilman Anthony Grice. “Those days are over.”

The City of Newburgh said it is “directly related to the sound fiscal leadership and financial responsible decisions that the Mayor and Council have made in collaboration with the City Manager and Comptroller.”

City Manager Joseph Donat and Comptroller Todd Venning were able to work closely with the Council to help restore the fiscal credibility.

The score, calculated by the State, provides an objective measure of the fiscal challenges facing local governments. It was implemented in 2013 by the New York State Comptroller to better track stress condition trends and to see where things are headed. The system allows a way to see warning signs of fiscal stress. In doing so, the City can then make a plan of action.

The calculation is based on five categories: year end fund balance, operating deficits, cash position, use of short-term cash-flow debt and fixed costs.

The fiscal score was calculated before the COVID-19 pandemic. The reports in upcoming years will better reflect the fiscal stress that has taken place from the pandemic.

The Town of Newburgh also had a fiscal score of zero.

No other surrounding areas had as low of a fiscal score as Newburgh’s. In comparison, Poughkeepsie has a fiscal stress score of 75.

“Todd Venning’s work in collaboration with our Council and executive staff saved this City for years to come, especially in light of a global pandemic that no one anticipated,” said Mayor Torrance Harvey. “

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