Moody’s reaffirmed East Hampton Village’s credit rating last week as Aa2, the third-highest rating possible.
The credit rating agency also assigned an Aa2 rating to the village’s proposed $3.3 million serial bond offering.
According to outgoing Village Administrator Larry Cantwell, the credit rating means the village is in a good position. “[It] will help achieve a low interest rate,” he said, when the village needs to borrow money. “It’s a quality rating,” he added.
When deciding where to rank municipalities, Moody’s considers their financial stability within the context of each government’s tax base. To get a high rating, governments must show strong financial reports from multiple years. According to Mr. Cantwell, East Hampton Village has a surplus in its budget each year.
Moody’s estimated that the general fund balance will grow because of improved non-property-tax collections, including an increase in building permits and mortgage taxes.
The village’s debt is decreasing also, according to the report. In total, the village has $9.7 million in outstanding general obligation debt. However, once it sells $3.3 million in serial bonds, that short-term debt will go down to $6.4 million.
Village Mayor Paul F. Rickenbach Jr. said last week in a press release that he was “pleased” that Moody’s recognized the village’s “conservative budget practices and stable financial operations.”