Glen Cove proposes $65.4 million spending plan

Glen Cove Mayor Pamela Panzenbeck presented a $65.4 million budget proposal for 2025 at the City Council meeting on Monday, which includes a 1.98 percent property tax increase for homeowners — roughly $55 per year for an average home in the city, valued at $575,000.
Before introducing the specifics of the spending plan, Panzenbeck highlighted several of the key achievements of her tenure, which she credits with significantly improving Glen Cove’s financial condition.
“We’ve had three consecutive years of operating surpluses, totaling $5 million,” she said. She noted that by the end of the 2023 fiscal year, the city’s operating deficit had been eliminated, leaving Glen Cove with a surplus fund balance of roughly $780,000.
“This is a significant improvement,” Panzenbeck said, recalling the deficit of over $2 million that she inherited when she took office. She acknowledged that while the city still lacks substantial financial reserves, unlike larger municipalities and counties, she remains committed to building them up.
“We’re working to get there,” she said, emphasizing the importance of using reserves to stabilize taxes and maintain services during economic downturns or when the city is faced with unforeseen expenses.

Her efforts have not gone unnoticed. Panzenbeck proudly noted that Moody’s had upgraded Glen Cove’s credit rating to BAA1, its highest since 2010, one tier below Moody’s low-risk A3 category. She added that State Comptroller Thomas DiNapoli’s office recently categorized Glen Cove as having no fiscal stress, an important milestone, because the city has been deemed susceptible to fiscal stress in the past.
While these successes have laid a solid foundation, Panzenbeck was candid about the challenges ahead. Assembling next year’s spending plan, she said, was no easy task.
“It’s difficult to formulate a budget, considering how much is required to upkeep the city,” she said, noting that her administration has always sought to balance fiscal responsibility with the need to maintain city services.
The proposed budget is $2 million larger than the current $63.45 spending plan, an increase of about 3.11 percent. Significant factors driving the increase include $577,000 in mandated contributions to the state’s local retirement system, $538,000 in full-time employee salaries and $515,000 in health care premiums. Part-time employee wages are also set to increase by $115,330.
“We have to give increases to attract new workers and to keep our workforce,” the mayor said, pointing out that some part-time workers earn as little as $11 per hour, while fast-food jobs in the area pay significantly more. Increases in part-time wages will benefit employees in several city departments, including Emergency Medical Services, the Youth Bureau and the Senior Center.
To offset some of these increases, the budget anticipates reduced severance costs, down by $175,000, and a $100,000 decrease in tax refunds. Panzenbeck also outlined several revenue streams that are expected to bolster city finances in the coming year. Building permits are projected to generate $1.38 million, thanks to several development projects in the pipeline. The city is making conservative revenue estimates, however, because Panzenbeck wants to avoid relying too much on potential income.
Glen Cove’s school bus stop-arm enforcement program, implemented earlier this year, is expected to bring in $655,000 in revenue. Panzenbeck described the program as having had “great success” in enhancing student safety. Other anticipated revenue increases include interest and penalties on property taxes and liens, which were under-budgeted this year. The city also expects an increase in EMS ambulance billing revenues due to the volume of calls and the mix of services provided.
One notable fiscal challenge in 2025 will be the expected shortfall in payments from RXR Realty’s Garvies Point development. Panzenbeck explained that the city had not received a $1.15 million payment in lieu of taxes from RXR this year, and next year’s $1.17 million PILOT is also expected to go unpaid. The total loss of $2.32 million will create a significant revenue gap, but Panzenbeck remained optimistic, saying, “We are going to get that someday, but I don’t believe it’s going to be any day soon.”
Despite the obstacles, she assured residents that the proposed property tax increase remains well below the allowable state tax cap. This is the city’s first tax increase in three years, which she attributed to the administration’s ability to carefully manage expenses and improve Glen Cove’s fiscal outlook.
“Our mission,” the mayor said, “is to right-size government through efficiency, eliminate wasteful and non-essential spending, and manage down expense growth where possible.”
The City Council is scheduled to vote on the proposed budget on Oct. 22.