Credit Opinion on Ogunquit, Maine

The credit opinion on Ogunquit, Maine, released by Moody's, paints a detailed picture of the town's financial landscape, characterized by its affluent, tourism-driven economy. With a year-round population of about 1,500 that swells to 20,000 during peak tourist season, Ogunquit's economic vitality is closely tied to visitor spending. While the town enjoys a stable financial history, it faces challenges due to its significant reliance on parking fees, which account for nearly a quarter of its revenue. This dependency on an economically sensitive source is uncommon for local governments, yet Ogunquit has navigated the financial impacts of the pandemic successfully. Moody's highlights strengths such as high resident wealth and modest long-term liabilities, but warns of environmental risks, particularly flooding, that could impact the tourist area.

The rating outlook remains neutral, with no assigned outlooks for local governments with this debt level. Factors that could lead to an upgrade include a boost in cash reserves and population growth, while a downgrade could result from declines in fund balance or unexpected liabilities. This comprehensive analysis underscores the town's unique financial dynamics and the external risks it faces.