A July 31 financial assessment and opinion issued by the Moody’s financial rating agency in advance of a debt sale by East Hampton Town determined that the town’s finances are “very healthy” and that “leverage and fixed costs are quite moderate.” Moody’s maintained the town’s Aaa rating, the highest it issues.
East Hampton has a “stable outlook,” Moody’s said, predicting that its financial position “will remain strong due to its conservative budgeting and proactive financial management practices.”
“Management has budgeted very cautiously for all revenue streams, and as a result routinely outperforms the budget,” the agency continued. “This holds true on the expenditure side as well.” The strength of the town’s economy, based on elements such as property values, resident incomes, and low unemployment rates also factored into the assessment, according to a statement from Town Hall this month.
The town’s positive rating allows borrowing for projects and infrastructure improvements at a low interest rate. The bond sale, which happened this month, refinances $17 million in existing debt and raises an additional $26.3 million for new capital projects, including the acquisition of body cameras and other Police Department equipment; vehicle replacements, the purchase of an additional office suite at 300 Pantigo Place, replacement of the Highway Department salt barn, LED streetlight upgrades, and improvements to the picnic area at Maidstone Park and the basketball court at the Montauk Skate Park, among other items.
The town’s latest Aaa bond rating “makes all six years of this administration” that it has earned Moody’s highest rating, Supervisor Peter Van Scoyoc said at the town board’s Aug. 1 meeting. “I think that’s a tribute to our award-winning financial staff, budget officer, and our town board, which has been conservative fiscally.”
On Aug. 8, the supervisor told his colleagues that “we received excellent support for both the bond and note sales. The town had a total of 13 bids for serial bonds, which is the most in recent memory,” receiving a rate of 2.676 percent from RBC Capital Markets. “The rate on bond anticipation notes was 5 percent from J.P. Morgan Securities,” he said. The town’s Aaa rating enables “necessary infrastructure at the lowest possible rates,” he said.
On Tuesday, the supervisor said that meetings with all of the town’s department heads, to discuss the proposed 2024 budget, have been held this month. “That’s a major first step,” he said. Meetings with the Civil Service Employees Association, the labor union that represents employees in New York State and local government, and the Police Benevolent Association will happen next week.
The supervisor’s preliminary budget is due to the town clerk on Sept. 29. Its first work session presentation to the town board is tentatively scheduled for Oct. 3, with another on Oct. 10, and, if necessary, Oct. 17. Nov. 2 is the tentative date for a public hearing on the 2024 budget, and Nov. 16 for a vote on its adoption.
