First Look at Budget

East Hampton Town Supervisor Larry Cantwell has proposed a town budget for 2015 of $71.4 million, which, he says, will “address quality-of-life issues and concerns,” including code enforcement and the environment, and will “assist those who depend on certain town services.”

The budget reflects an almost 3-percent increase in spending next year over this year’s $69.4 million budget. If it is adopted as proposed, taxes for most town residents would increase by 2 percent, or by just over 3 percent for residents of incorporated villages. In-town residents with property assessed at $4,000 (valued in full at $550,000), would pay $23.08 more than they do now; the figure would be $14.32 more for residents of an incorporated village, who pay separately for a number of services.

The tax levy would rise by $1.4 million. A state-imposed cap would have allowed East Hampton a maximum increase of $1.6 million this year, and the $204,051 in wiggle room will be credited toward the 2016 budget, authorizing the town to increase the levy by that amount at that time. In addition, because the increase is under the cap, residents who qualify under the STAR program would receive a rebate check from the state for the amount of the increase on the town portion of their property tax.

The budget provides for the addition of three new jobs with the town’s 310-member full-time staff, and for making one part-time job full time. It proposes that the town hire one new full-time ordinance enforcement officer. A “public safety coordinator” post that has been held by a town attorney would now become a formal separate title, allowing full-time oversight of the enforcement efforts related to the Building, Fire Prevention, Animal Control, and Ordinance Enforcement Departments.

In addition, Mr. Cantwell said Tuesday, “in response to the seasonal influx” and its related issues, $50,000 was added to the Police Department’s part time or seasonal salaries budget, $25,000 to the Marine Patrol’s salary fund, and $12,000 will pay for more seasonal help to pick up litter, which will “add more coverage in the busy summer months and boost compliance with parking regulations, traffic control, and local ordinances.”

The tentative budget also includes $100,000 to complete the development of a townwide comprehensive wastewater plan. Ten thousand dollars, for a total of $20,000, would be added to the Natural Resources Department budget to determine whether bodies of water should be closed to swimming or fishing, and to help identify the causes of pollution and how they might be addressed.

Increased appropriations are earmarked for programs for senior citizensmarked for programs for senior citizens in Montauk and at the East Hampton Senior Center, and to increase the hours of a cook for the nutrition program. A $10,800 allotment would cover a new, part-time youth coordinator in the Human Services Department.

Allocations to outside groups would be continued, such as $80,000 to the East Hampton Day Care Learning Center, $35,000 to the Project Most after-school program, and $50,000 to the Family Service League. In addition, a $25,000 grant would be made to the South Fork Behavioral Health Initiative to help cover the costs of providing mental and behavioral health services.

The East Hampton Historical Society would receive $20,000 toward repairs to the Second House Museum building in Montauk.

The executive assistant to the supervisor, a post held by Alex Walter, would become full time under the tentative budget. A 2-percent salary increase for department heads has been budgeted for, and provisions made for the settlement of a contract under negotiation with the Civil Service Employees Association.

Because of a financial deficit accrued under a previous administration, the town had to borrow $21 million in 2010 and 2011, and has been paying that off. The total now owed is $12.9 million. The supervisor has proposed moving $1.7 million of surplus next year to a reserve fund earmarked for debt repayment, which would bring that reserve to $2.9 million — enough to cover approximately 25 percent of the deficit borrowing still due. A $2.5 million principal payment is due next year.

The town currently has a fund balance totaling $18 million. The proposed budget would rely on a total of $677,499 in appropriations from fund balances and reserves. This year, $800,000 in set-aside money was used.

The budget relies on conservative estimates of income next year from mortgage tax and other revenue sources, such as grants, fees, and fines. While mortgage tax revenue this year is expected to reach almost $4.7 million, the proposed budget estimates $4.1 million coming in next year. “This is a cyclical revenue source subject to change in the real estate market, and it is prudent to be cautious in estimating this revenue,” according to the budget message.

Should mortgage taxes result in more income than expected next year, Mr. Cantwell said Tuesday, the overage would help the town improve its financial standing.

Closure of the town scavenger waste treatment plant this fall will save the town almost $460,000 next year, compared to this year’s budget.

A proposed spending plan for the community preservation fund, which is separate from the town’s operating funds and receives income from a 2-percent real estate transfer tax rather than property taxes, calls for $25 million to be spent next year on land purchases. As of Sept. 20, the preservation fund had a cash balance of just over $52 million, of which $30 million has been earmarked for pending acquisitions.

The current part-time position of environmental technician would become a full-time job, with the C.P.F. paying half the cost of the increased salary. Because the staffer would also help to manage properties not acquired with the preservation fund, the remainder of the salary would come from the town’s general fund.

C.P.F. revenue this year is expected to total $25.2 million. Next year’s spending plan was crafted with a “conservative projection” of $18.3 million in 2015 income in mind.

The town board will review and discuss the proposed budget at its next two work sessions, on Tuesday and Oct. 14, and will schedule a public hearing during November. A final vote on the budget must take place, according to state law, on or before Nov. 20.