Moody’s Investors Service Inc., whose credit-rating system is widely used by lenders working with municipalities and school districts, has once again awarded its best possible rating to East Hampton Town.
The town was granted an “Aaa” credit rating in 2017 — a status that has been repeated every year since, a sign that the town’s finances and outlook achieved stability following a period of time when that was not always the case. In 2011, for example, the town had to take out a $21.2 million bond to cover a deficit that was attributed at the time to fiscal mismanagement by prior town administrations.
The top-tier credit rating means that when it does have to borrow money — as it will do in August with its annual debt sale — the town can access better interest rates and other loan terms, saving taxpayers money in the long run.
“This financial flexibility is crucial as we continue to invest in infrastructure, public safety, community services, and enhance the quality of life for all residents,” the town said in a statement on Monday.
Moody’s highlighted several factors that went into the rating: the town’s “proactive capital planning and collaboration with state and federal officials” in light of environmental risks from climate change and extreme weather; the impact of East Hampton’s “status as a desirable location in attracting a strong tax base,” and “the growing trend of homeowners extending their stays or making East Hampton their primary residence.”
In a statement, Kathee Burke-Gonzalez, who is in her first term as town supervisor, said “it’s not just about managing finances.”
“It’s also about ensuring that our decisions today lay a strong foundation for future generations,” she said. “Our proactive stance on environmental issues is a critical part of our strategy. By working closely with state and federal partners, we’ve been able to mitigate risks and better prepare our community from the impacts of climate change and extreme weather events.”
