East Hampton, the Long Island town where billionaire Ronald Perelman and comedian Jerry Seinfeld own homes, is selling the most debt in eight years to replace equipment and make repairs after Hurricane Sandy.
The town about 100 miles (161 kilometers) east of Manhattan in New York’s Suffolk County plans to offer about $16 million in debt on Aug. 19, its biggest sale since 2006, said Len Bernard, head of the finance department. Proceeds will go toward building repairs after Sandy struck the beach community in October 2012, road construction and replacing sanitation and highway equipment, he said.
Moody’s Investors Services last week upgraded East Hampton’s debt rating to Aa2, the third-highest, citing improving finances and strong income levels.
“The town is in solid financial shape,” he said. “Our economy here on the east end of Long Island is very good. It’s booming.”
Investors have had their pick of debt from the Hamptons in August. Westhampton Beach Union Free School District sold $11 million of tax-anticipation notes and Southampton issued about $9 million of debt this month, according to data compiled by Bloomberg. There’s no connection between East Hampton’s offering and sales in the neighboring towns, Bernard said.
East Hampton, which had 21,457 residents as of 2010, is a second home to some of the world’s wealthiest and most influential people, according to bond documents. The town’s median household income was $72,803 in 2010, up 40 percent from 2000, the documents show.
The offering includes about $4 million of bonds due as late as August 2027 and about $12 million of bond-anticipation notes due August 2015, deal documents show.
East Hampton’s budgets have been balanced for the past four-and-a-half years, said Larry Cantwell, the town supervisor.
“Many of the investors may have actually been here in East Hampton,” Cantwell said.