$95 Million Budget for East Hampton Would Not Exceed Tax Cap Despite 4.7 Percent Spending Hike

East Hampton Town Supervisor Peter Van Scoyoc proposed a 2024 town budget that would hike town spending next year by nearly $5 million, driven largely by increased wages for employees as the town struggles to fill and retain workers in key departments.

The supervisor’s proposed budget calls for $95,402,778 in spending — an increase in spending of about $4.7 million, or about 5.2 percent more than the 2023 adopted budget.

Despite the jump in spending, the proposed tax levy remains below the state-mandated cap on tax levy increases, which this year allowed a hike of nearly 3 percent, because a partial exclusion was allowed for pension fund contributions that saw large rate increases this year.

The budget office has estimated that the town will need to raise the tax rate by about 1.6 percent for town residents and about 8 percent for residents of East Hampton and Sag Harbor villages.

According to the supervisor’s office, a home assessed at $4,000, with about $1.08 million of market value, would see an increase in the town tax bill next year of about $21. A similar home in the village would see an increase in the town tax bill of about $40.

The total tax levy for the coming year will be about $60.4 million, with another $34.9 million to come from various revenue sources.

As is typical, salaries and benefits for the town’s more than 300 full-time employees and 150 part-time summer staff will be the biggest hunk of the spending: about $57.9 million, or 60 percent. Employee benefits account for more than $22 million, an increase of nearly $1 million from 2023.

The budget proposes the hiring of just one new employee, a new code enforcement supervisor, but anticipates substantial increases in salaries as the town negotiates a new civil service contract and struggles to compete to fill and maintain positions in competition with other municipalities and the private sector’s pay scales and the logistical hurdles posed by traffic snarls for those traveling from points west.

“The town continues to face increasing costs for goods and services that we are providing to residents on a daily basis, and we do also face challenges in recruiting and retaining personnel,” Budget Officer Rebecca Hansen said.

A total of 13 employees are in line for promotions in civil service positions which would increase those employees’ salaries by a total of about $100,000, Hansen said.

Hansen noted that the budget forecasts uncertain increases in union salaries — the town’s civil service contracts are up at the end of the year and a new contract is being negotiated — and health insurance rates.

Van Scoyoc said that negotiations with the CSEA have been “very positive.”

Base salaries for the four council members will be $84,425, unchanged from 2023, along with between $31,000 and $51,000 in benefits. The salary of whoever wins the race to replace Van Scoyoc in the supervisor’s suite next year would be $135,078.

The town has consistently over-budgeted and realized positive balances of revenues to expenditures at the end of each fiscal year, as it did again in 2022, the budget office said.

The town’s total fund balance reserves stand at nearly $71 million — about 76 percent of the total budget.

The East Hampton Airport fund, which has been carrying millions in legal fees as the town battles for control of flight operations, is still projected to have an $8.7 million surplus at the end of 2023.

The large surplus has allowed the town to pare back its borrowing — it no longer borrows money for any capital expenditures less than $60,000 — to reduce debt service.

Councilwoman Kathee Burke-Gonzalez asked that the funding for the Montauk Community Senior Nutrition Program be increased from $120,000 to $130,000 in 2024 to account for increased food costs for the 350 meals served each month to senior citizens.

“That’s over 4,000 meals a year and they do it on a very tight budget,” she said, “but we all know when we go to the grocery store what it costs to shop these days.”

“Throughout my three-term tenure as town supervisor, I have endeavored to craft budgets and financial plans that are fiscally responsible while being responsive to the needs of the town and its residents,” Van Scoyoc said in his budget statement.

At Tuesday’s meeting, he thanked Hansen, her predecessor, Len Bernard, and the budget office’s staff.

“I think this budget is quite sound financially and will add to our very long history now of strong financial management, and I really appreciate the support that this board has given to make sure our finances are very solid,” he said. “That’s where we are, and I expect will continue to be for years to come.”