East Hampton Town Receives Highest Credit Rating, Again

EAST HAMPTON, NY — East Hampton Town has maintained its Aaa bond rating, the highest possible, from Moody's Investors Service, town officials said Monday.

According to a release from East Hampton Town Supervisor Peter Van Scoyoc's office, Moody’s Investors Service called the own’s finances “very healthy,” and noted the town's “conservative budgeting and proactive financial management” and reserves.

“The reaffirmation by Moody’s of the town’s Aaa bond rating is the result of prudent management and careful budgeting,” Van Scoyoc said. "The significant reserves in each of the town’s major funds have also allowed the town to respond quickly and effectively to the threat of the COVID-19 pandemic.”

Moodys Investors Service once again gave East Hampton the Aaa credit rating in advance of a bond sale this week and cited “the town’s sizeable, affluent and growing tax base, strong financial position, and modest leverage.”

East Hampton’s $12.9 million bond issue this week will raise funds for a number of projects, including the acquisition of property for affordable housing, the replacement of the bulkhead at Three Mile Harbor, road reconstruction, and the historic restoration of Second House in Montauk, Van Scoyoc said.

The town has maintained the Aaa bond rating since 2017, repaying more than $20 million in deficit financing bonds dating from 2010 and 2011; the deficit financing bonds will be fully paid off in March, 2021, the release said.

"The town’s financial position will remain strong due to its conservative budgeting and proactive financial management practices,” Moody’s said; a “stable” outlook for the town’s finances was also predicted.

East Hampton’s tax base is expected to remain strong and to continue to show steady growth, Moody's said

The coronavirus outbreak is considered a “social risk . . . given the substantial implications for public health and safety,” Moody's said, adding that the pandemic could have a longer term impact, “depending on the severity and duration of the crisis.”

Moody's however, said that “the town has adjusted its budgeting to manage its finances through the pandemic. . . We do not see any material immediate credit risks for East Hampton; to date tax collections have remained strong and the township’s finances remain strong,” Moody’s said.