Deep Cuts, But No Layoffs In 2011

Proposed budget slashes spending

BY KATY GURLEY

Voluntary retirements and attrition apparently will help East Hampton Town officials avoid layoffs at Town Hall while still cutting spending 11.2 percent in the proposed 2011 budget unveiled last week, slashing property taxes by as much as 20 percent.

The tentative budget is $63.67 million, down $8.05 million from the 2010 spending plan.Town Supervisor Bill Wilkinson had said layoffs might be necessary, but the new budget makes no mention of them. Still, a little more than half of the projected cuts come from staff reductions—retirements and staff positions vacated and left unfilled during the course of the year. The rest of the savings comes from organizational changes, the elimination of the town’s leaf collection program, the closing of the recycling center one day a week, and a pooling of support staff and office equipment.

The state’s early retirement program, which East Hampton opted to participate in, has resulted in a reduction of 34 full-time positions, saving $2.7 million in annual salary and benefit costs, the proposed budget notes. Eighteen open positions budgeted for in 2010 were left unfilled during the past nine months, creating additional savings of $1.53 million, with total estimated savings in staff reductions totaling $4.23 million.

According to the tentative budget, residents living inside the Village of East Hampton will see a 20.4-percent drop in their total town tax rate. Residents living outside the village will see a 17.7-percent reduction. The overall tax levy will go down by $10.4 million compared to the 2010 budget, an 18-percent drop. The owner of a home valued at $1.8 million with a $14,000 assessment inside the village will save $437.22 on the annual tax bill; the same house with the same assessment outside of the village will save $796.32.

Mr. Wilkinson, who had been promising a tight budget for the year 2011, submitted the plan on Thursday, September 30, to Town Clerk Fred Overton.

“Importantly, the tentative budget does not rely heavily on the sale of assets to meet our tax-cutting goals—although we hope to generate far more revenue from asset sales in 2011 than we project in the budget,” the supervisor stated in the introduction to the tentative budget.

The projected 2011 revenue comes from $46 million from property taxes, $16.4 million of non-tax sources and $1.13 million of appropriated Town Highway Department surplus.

The Human Services Department had the highest number of people to retire of any department, 11 out of 53 employees. Town Board members declined to say whether that would lead to cuts in human services programs, such as the after-school program at the Senior Citizens Center.

“I’m encouraged by the cutting of the budget this year, but the town has things we need to keep as well,” said Councilman Pete Hammerle. “I’m reserving more comment on that until I have had a chance to review the budget thoroughly.”

Dominick Stanzione said there would be “ample time, with three public discussions of the budget scheduled, to discuss the various department arrangements.”

Working with department heads, Mr. Wilkinson said, he created the budget using a zerobased approach, in which all expenses had to be justified regardless of what was spent the previous year. The supervisor said his budget “moves the town away from the six-year financial wasteland from 2004 to the period prior to January 1, 2010, when general fund deficits exploded to a projected $30 million, proper accounting of finances ceased to exist, and the budget process lacked basic discipline, toward the priorities of closing our huge structural deficit, properly guarding and accounting for the people’s money, and making the processes of government professional, honest and open.”

Organizational changes also helped bring in a tight budget, according to Mr. Wilkinson. The Harbor Patrol was incorporated into the police department earlier this year, reducing operational and staffing costs, and the Town Board also passed a resolution last weekend creating the division of Public Safety, consolidating the departments of code enforcement with animal control and the building inspector and fire marshal’s offices. The administrator of the Division of Public Safety will be Patrick Gunn, who also serves as an assistant town attorney. Betsey Bambrick, former director of animal control, will head up code enforcement.

“The opportunity to share support and professional staff between the various enforcement functions under the new structure will save our town just under $400,000,” Mr. Wilkinson said.

The tentative budget will become the preliminary budget once the Town Board enacts a final version after discussing the budget at public work sessions on October 12 and 19, and at a public hearing, which is slated for November 4. A final Town Board vote must be held by November 18.

Copies of the tentative budget are available to the public from the town clerk’s office.