Town Maintains AAA Credit Rating

EAST HAMPTON, NY — The Town of East Hampton reports that its fiscal health is sound.

East Hampton has maintained its AAA credit rating, Moody’s Investors Service said this week, according to a release from Supervisor Peter Van Scoyoc's office.

In preparation for an Aug. 15 sale of $16.5 million in general obligation bonds for the town, Moody’s affirmed that the town’s financial status continues to warrant the AAA rating awarded in 2017.

"The rating is the highest rating given, reflecting confidence not only in the town’s present financial condition but also in its financial practices," the release said.

Moody’s cited the town’s “conservative budgeting and proactive financial management practices” as well as its “modest debt burden” and “sizable tax base” as factors in the triple-A rating and stable outlook, and added that the town has been able to build reserves while lowering overall indebtedness.

"It is very satisfying to have Moody’s acknowledge, through our AAA rating, the town’s strong financial position as well as the work we have been doing to maintain that strength," Van Scoyoc said. "Our substantial financial reserves and surplus were particularly noted by Moody’s as factors that have allowed us to maintain the highest rating possible.”

Van Scoyoc added that “strong reserves and intelligent and measured use of those reserves has catapulted us to the highest rating achievable. We will continue to do everything possible through our budgeting and spending policies, which were lauded by Moody’s, to maintain those reserves at the high levels expected for a triple-A credit.”

“Moody’s was very supportive of the town’s conservative budgeting of expenses and especially revenue, which is very sensitive to sudden economic shifts," East Hampton's budget manager Len Bernard said.

Moody’s agreed with the town’s conservative approach to budgeting "volatile revenue streams," including mortgage tax and building permit fees, Bernard said.

"These types of revenues can fluctuate from year to year and could create problems if too aggressively projected, as was the case 10 years ago," Bernard said. “We cannot return to budgeting practices that created problems in the past, as some would want us to do, because we now have substantial and stable reserves. We must continue to be smart and vigilant in the way we create and manage our budgets."

The bonds being sold will be used to finance a variety of projects including a town-wide emergency communication system upgrade, new records management system, a new airport fuel facility, and structural improvements to the East Hampton RECenter, the town said.

Patch file photo.