East Hampton Village Mayor Paul F. Rickenbach Jr. announced last week that Moody’s Investors Service has assigned an Aa2 rating with a positive financial outlook to the village’s proposed $3.3 million serial bond offering, and affirmed the Aa2 rating on current outstanding obligations. The rating represents an assessment of high quality and very low credit risk.
“I am pleased Moody’s has recognized the ‘conservative budget practices, modest debt burden, and stable financial operations’ of the Village of East Hampton,” Mr. Rickenbach said in a release. “In reporting on the village’s ‘stable financial operation and increasing general fund balance’ Moody’s noted the estimated general fund balance is expected to grow to $4.1 million or 21 percent of revenues at year end 2013.”
The Moody’s report noted the village’s sizable, affluent tax base. The credit-rating and analysis firm’s report also predicted an improved near-term financial position for the village given a projected $500,000 operating surplus in the fiscal year, “driven by improved nonproperty tax collections, including an increase in building permits and mortgage taxes.”