East Hampton Town Matches Highest Credit Rating Ever

EAST HAMPTON, NY — East Hampton Town has matched its highest credit rating ever, according to a release by Supervisor Larry Cantwell.

Moody’s Investors Service has increased the credit rating for the Town of East Hampton to Aa1
from Aa2, with a positive outlook, an uptick from a stable outlook, restoring the town to
its highest rating ever, achieved in 2003, the release said.

“In 2003, the Town achieved the highest credit rating in its history and, today, based on the work of two administrations, we have restored that rating,” Cantwell said. "The town has controlled expenses, increased non-tax revenue and built surpluses, all while investing in the capital improvements needed to maintain a municipality that functions efficiently and effectively.”

In its report, Moody's said that East Hampton's “Aa1 rating reflects the town’s improving financial position as a result of deficit financing, ongoing conservative budgeting and strengthened financial management practices.”

The report also said the town has exhibited “sound, conservative management with demonstrated ability to restore financial flexibility.”

The positive outlook, the Moody's report said, “reflects our view that the town’s financial position
will continue to improve . . . due to its conservative budgeting and strong financial management
practices and limited future borrowing planned.”

The town’s strong financial performance in 2015 included an increase in general fund surplus of
more than $4.1 million and declining indebtedness of nearly $6.4 million, Cantwell said.

“Larger surpluses and less debt is a combination we are very proud of and have worked hard to achieve,” Cantwel lsaid.

The town's total general fund balance has grown from -8.4 percent of revenues in fiscal 2010 to "a sound 31.3 percent of revenues in fiscal 2015," Moody's said.

The constant over the last six and one half years has been the financial leadership of Budget Director Len Bernard and Chief Auditor Charlene Kagel, who have been there every step of the way," Cantwell said.

East Hampton officials invited Moody’s representatives to East Hampton last week to update them on the
financial progress the town has made over the last six and a half years and to provide a tour of
town facilities and local points of interest.

The credit rating comes in advance of the Town’s annual debt sale, which will occur on August 16 at the offices of the town’s financial consultant, Capital Markets Advisors, the release said.

East Hampotn Town is selling $7.7 million in long-term bonds and $11.1 million in short-term notes, the release said; in addition, the town is refinancing bonds from 2008. All borrowings will be positively impacted by the rating and outlook increases, the release said.

Capital Markets president Richard Tortora estimates the higher rating will contribute greatly to approximately $300,000 in interest savings over the life of the bonds to be sold