Southold Town gets good credit news

Moody’s Investors Service has affirmed Southold Town’s Aa2 bond rating, allowing the municipality to sell $13.1 million worth of bonds at a 3.5 percent interest rate.

“I am grateful that Wall Street has again recognized the Southold Town Board’s tightfisted approach to managing the taxpayer’s money,” said Town Supervisor Scott Russell in a statement. The town is planning to spend about $10 million for open space purchases.

“The less we pay in interest, the more land we have an opportunity to preserve,” Russell said.

Southold is one of many East End towns that have borrowed money against future deposits in the Community Preservation Fund, where 2 percent of the purchase costs of house sales are transferred for preservation land purchases.

In its rating memo, Moody’s said the rating reflects “the town’s satisfactory financial position, large tax base marked by above average wealth levels and a modest debt profile which is expected to remain manageable.”