Moody’s Investors Service on June 3, 2014, said it has upgraded East Hampton Village’s bond rating to Aa1, the second-highest rating, citing “the village’s sizable, very affluent tax base.”
The village’s previous rating was Aa2. Moody’s said the upgrade will affect $8.45 million in debt. The village said the rating will save it about $225,000.
East Hampton Village ended 2013 with a $1 million surplus and projects another surplus in 2014, Moody’s said. The village attributed the surpluses to new construction and the improved collection of court penalties and fines.
Moody’s said the village’s assessed value remained stable, growing an average of 0.6 percent a year between 2008 and 2013 despite the economic downtown.
“The village’s sizable $5.4 billion tax base is expected to remain healthy and will continue to benefit from its position as a pre-eminent seasonal community located on eastern Long Island,” the service said in its report.
Second homes make up 70 percent of the village’s housing stock, Moody’s said.
“This is great news for the Village of East Hampton,” Mayor Paul Rickenbach said in a statement. “The village has remained diligent in its efforts to manage its finances, and we have been very fortunate in withstanding any major impacts to our assessed home valuations and resulting tax base.”