Moody’s Investors Service has assigned its highest bond rating, Aaa, to East Hampton Town, Supervisor Peter Van Scoyoc announced during the town board’s meeting last Thursday.
The town’s finances have earned the top-tier rating continuously since 2017.
“The stable outlook reflects our view that the town’s financial position will remain strong due to its conservative budgeting and proactive financial management practices,” said Moody’s, according to a statement issued from Town Hall last Thursday. “We also expect that the tax base will remain very strong and continue to experience steady growth.”
The rating also reflects “the town’s sizeable, affluent, and desirable tax base, strong financial position, and modest leverage,” as well as its “healthy liquidity,” according to Moody’s. The opinion noted that the town has for years exceeded its target of maintaining a minimum 20 percent fund balance in all funds.
“This is the fifth consecutive year under my administration that the town has received this designation,” Mr. Van Scoyoc said during last week’s board meeting. “I would like to thank and congratulate our finance department staff and fellow town board members for your efforts as well.”
Moody’s reviews such factors as legal liabilities in determining its rating, a fact Mr. Van Scoyoc noted in criticizing recent newspaper advertisements, among them one in The Star, concerning lawsuits related to East Hampton Airport and public access to the 4,000-foot stretch of ocean beach on Napeague commonly known as Truck Beach.
“Our Aaa rating is in stark contrast to claims made in the recent spate of full-page political ads that the town’s financial status is at risk due to the cost of litigation,” he said.
Environmental, social, and governance considerations also taken into account by Moody’s include the town’s exposure to possible extreme weather events and its ongoing efforts to address their risk.
The rating update took place in advance of an annual debt sale totaling approximately $24.6 million, which will refinance current debt and raise money to finance capital projects. The $17.3 million in new debt will finance projects from the town’s 2022 capital plan, such as infrastructure upgrades at town facilities, continued fleet replacements and upgrades, the new senior citizens center to be constructed in Amagansett, and the playing fields to be constructed in Wainscott.
Calling the town “priceless,” Mr. Van Scoyoc said that “we will continue to vigorously defend our residents’ rights to beach access and the right to regulate our own airport. We will continue to defend our codes, preventing overcrowding of business establishments and illegal short-term rentals. We will continue protecting our environment and our quality of life, to the best of our ability.”
