Following the settlement of the district’s outstanding LIPA litigation, Moody’s Investment Service has upgraded the Northport-East Northport School District’s rating to an Aa1. According to the Moody’s press release, the upgrade “reflects a suitable and stable financial position, modest long-term liability profile and sizeable tax base, that will see some near-term decline.”
Despite external factors that often inhibit such an upgrade such as the coronavirus pandemic, the district’s strong decision making, push to settle the LIPA settlement, and resolution of environmental concerns at a district building have proven to be for the benefit, per Moody’s analysis and upgraded rating.
“The district is pleased to hear of the improved score and feels it is reflective of our actions to provide financial stability to the school community,” said Robert Banzer, superintendent of schools.
The LIPA suit settlement, agreed upon by the Town of Huntington Board in September 2020, will result in a reduction of LIPA’s tax payments to the District from $86 million to $46 million over the next seven years. This settlement will result in an increase in property tax payments for community home and business owners; however, the district is exploring ways to mitigate this increase.