Patchogue's bond rating improves

In an affirmation of Patchogue's solid financial health, Moody's Investors Service has upgraded the village's bond rating to Aa3 from A1.

The upgraded rating, issued Monday, reflects "the village's trend of sound financial operations reflected in healthy reserves, a moderate tax base with above-average wealth demographics, and below-average debt burden with rapid payout," Moody's officials said.

The agency highlighted for praise last year's village operating surplus of $162,000, which brought the village's general funds reserve to $3.4 million.

Moody's officials said that while the village's $1.3 billion tax base declined 2 percent last year, the start of the $100 million Patchogue New Village mixed-use development downtown will help bolster the future tax base.

In March, a lawsuit aimed at blocking the development was ruled in favor of developer Tritec of East Setauket. The construction is expected to begin by mid-June and take two years. The project is slated to include nearly 300 apartments, 17,000 square feet of office space and 45,000 square feet of retail space, at the site of the former Swezey's department store.

Mayor Paul Pontieri said years of sound fiscal management has helped the South Shore village of about 11,800 residents reach the coveted bond rating. "It just tells the story about us," Pontieri said. "We've taken care of our house."

The rating upgrade means the village will pay less interest on its $1.4 million debt for a new recreation center. Two years ago, the village was paying 3.5 percent interest on its debt, Pontieri said. "Now, the interest is 2.9 percent," he said. "It's a tremendous savings."