Southampton Town Retains AAA Bond Rating • Southampton, NY

Southampton Town Retains AAA Bond Rating

S&P Re-Affirms its Highest Possible Score and ‘Stable’ Outlook

Southampton Town Supervisor Maria Moore brought welcome news this week in announcing that Southampton’s latest bond rating puts the municipality among the most reliable borrowers in New York State.

After rigorous review, S&P Global Ratings assigned its “AAA” score, the firm’s highest, to the Town’s approximately $18 million series 2026 public improvement bonds. Simultaneously, the nation’s largest municipal rating agency did so again with the Town’s outstanding general obligation (GO) debt and affirmed a “stable” outlook. Taken together, the ratings represent a borrower’s “extremely strong capacity” to meet its financial commitments on a timely basis. 

“This is outstanding news for Southampton and our residents,” said Supervisor Maria Moore. “Maintaining the highest possible credit rating is a powerful recognition of the Town’s strong financial position and the disciplined approach we take to managing taxpayer dollars.”

Standard & Poor’s attributes the positive two-year outlook to Southampton’s “resilient and expanding local economy, coupled with a conservatively managed budget, supported by a robust slate of policies.” The latter include “forward-looking” capital planning, along with reserve and debt policies that guide management decisions.

The dramatic increase in local real estate values over the past several years, combined with broad and diverse economic activity throughout Suffolk County, have contributed to an extraordinarily strong property tax base, and in turn, healthy fund surpluses. Since 2022, for example, property values across the Town have increased about 76 percent, further fueling growth of market value per capita metrics. Such conditions, along with manageable liabilities and a pay-as-you-go spending philosophy, favor a consistently positive operating performance.

The Town intends to use the series 2026 bond proceeds to fund a variety of capital projects and equipment, such as upgrades to its park and beach facilities, town facilities, and road and sidewalk improvements.

“Our careful planning and responsible debt management have helped put Southampton in an exceptionally strong position,” concluded Moore. “This AAA rating allows us to borrow at favorable rates, when needed, which reduces costs to taxpayers while making the investments necessary to keep our community strong for years to come. We remain dedicated to delivering exceptional services and maintaining the unparalleled character of Southampton while protecting our community’s long-term financial health.”