The town of Smithtown has once again secured a AAA bond rating, the highest possible financial distinction, from Moody’s Investors Service, despite challenges such as inflation, last August’s destructive flooding, and unfunded mandates required by the state. According to the town, this rating reaffirms Smithtown’s strong financial management, stable reserves, and long-term economic stability, positioning the town for continued growth and investment in critical infrastructure projects.
According to Moody’s Credit Opinion, “The Town of Smithtown (Aaa) benefits from stable financial operations with healthy reserve levels and a strong economic profile. While the town is largely built out and is not likely to grow at the same rate as the rest of the country, planned and recent sewer upgrades, especially to the town’s various downtown corridors have started to spur modest growth that will likely continue over the next five years. The town’s full value per capita and resident income are strong and consistent with peers at Aaa. The town’s long-term liability has moderated over the past three years to a level more consistent with Aaa peers and remains manageable.”
“At a time when communities across the nation face economic uncertainty, Smithtown stands as a beacon of financial stability and responsible governance,” said Town Supervisor Ed Wehrheim. “It reaffirms our town’s reputation as a model of sound financial stewardship and validates the strategic investments we have made in critical infrastructure—protecting our cherished waterways, breathing new life into our downtowns, and laying the foundation for a thriving, prosperous future for generations to come. None of this would be possible without an incredible team.”
In last year’s report, Smithtown was credited for identifying and orchestrating vital capital improvements, geared towards boosting the local economy, and providing a return on investment (ROI) to the taxpayer. This year’s AAA bond rating reaffirms the administration’s decisions citing a strong economic base, sound fiscal policies, and a manageable long-term liability ratio. While Smithtown has been roughly 94.5% developed since the turn of the millennium, the town is poised for sustained prosperity, with downtown renewal efforts underway in Kings Park, Smithtown, and St. James, promoting economic stability and community investment.
Moody’s analysts confirm that the replacement of outdated septic systems with modern sewer lines in these business districts strengthens the local economy, attracts private investment, and enhances property values, which have remained resilient over the past five years.
The report also highlights that reserves have remained stable or experienced growth in recent years. Additionally, the town’s pay-as-you-go capital program has enabled significant infrastructure investments without excessive borrowing, showcasing a fiscally responsible and sustainable approach to long-term development.
The town noted the 2025 budget was balanced responsibly — without dipping into reserves — despite rising costs from state-mandated expenses like insurance premiums, New York State retirement, and minimum wage increases. In fact, health insurance costs alone added over $2 million to operating expenses. Smithtown was one of only two municipalities in Suffolk County to stay within the state tax cap in this year’s operating budget.
Smithtown’s multi-year financial plan projects stable reserves through 2026, reflecting conservative, strategic budgeting.
This rating enables the town to secure low borrowing costs for future capital projects, ensuring that Smithtown can continue to invest in parks & beaches, open space preservation, roads and critical stormwater infrastructure, downtown revitalization, and outstanding essential services without burdening taxpayers.
Over the past five years, the Town of Smithtown has prioritized capital improvements aimed at strengthening the local economy, increasing property values and delivering a strong return on investment for the residents. Upgrades to the park system (ie: Landing Golf and Country Club, Hoyt Farm, and now Paul T. Given Park) have not only enhanced quality of life but also driven economic activity in surrounding small business districts. Additionally, the Town has made significant investments in environmental preservation, from acquiring environmentally sensitive land at the headwaters of the Nissequogue River to major drainage and culvert rehabilitation, street tree programs, and clean energy initiatives.
The revitalization of the business districts has been a primary focus of investment, with completed projects such as the Lake Avenue Business District, three new off-street parking lots, a welcoming gateway to the Long Island Innovation Park at Hauppauge, and the long-awaited sewer installation in Kings Park, have laid the foundation for a thriving, vibrant local economy. Each undertaking has benefited the community, which is reflected in the Town’s increased property assessments, and a growing tax base.
“As Smithtown moves forward into its next chapter of growth and prosperity, we remain steadfast in our mission to uphold the highest standards of financial stewardship, responsible investment, and community-driven progress,” Wehrheim said. “This is more than just a financial achievement; it is a testament to our community’s strength, and our commitment to safeguarding prosperity for future generations, ensuring that our children and grandchildren inherit a thriving, opportunity-rich Smithtown.”