The comptroller would regularly stress-test the fiscal condition of communities and then require remedial action where there is financial distress. Our village enjoys one of the highest ratings awarded by Moody's Investors Service. However, all municipalities should welcome this action.
Insolvencies can have widespread repercussions on all other fiscally sound local governments, which could be forced to pay higher interest on municipal bonds. With local governments attempting to meet a 2 percent annual cap on tax increases, and with pension and health insurance costs increasing, municipalities cannot afford to pay higher borrowing costs.
Michael Koblenz, East Hills
Editor's note: The writer is mayor of the Village of East Hills.