On Feb. 4, Moody's Investor Service assigned a MIG 1 rating to the Town of North Hempstead Bond Anticipation Notes-2002 for $36.8 million and affirmed the A1 rating and stable outlook on the town's outstanding general obligation debt. The present issue provides $33 million toward the Sumitomo case. Moody's states, "The top quality rating on the bond anticipation notes reflects the town's strong market access." Moody's further states, "The stable outlook is based upon Moody's expectation that the town's continuing efforts to control expenditure growth and budget revenues more conservatively should help to maintain the improved financial results in its operating funds...recent reductions in the Solid Waste Authority's debt burden should help to maintain the competitiveness of the authority's charges and lower the financial risk to the town."

According to Town Comptroller Helen Chen, "Entering the short-term market rather than serializing the notes in the long-term market will save the town $1.2 in interest."

With reference to the Sumitomo judgment, Supervisor May Newburger commented, "In my state of the town address on Jan. 25, I told everyone that because we were so forthcoming and because we have built a solid financial foundation, Moody's stated that the debt issuance is manageable and would not affect the town's rating. It is most gratifying to receive re-affirmation of our A1 rating."