Len Bernard, East Hampton Town's budget officer, had no shortage of news when he addressed the town board on Tuesday. He presented a draft three-year capital plan, spoke of next month's final payment on deficit financing related to budget mismanagement between 2005 and 2008, and announced his retirement, set for July.
The 75-line draft plan for 2021, a roadmap for spending to maintain fixed assets like infrastructure and equipment, includes items requested by department heads and members of the board. "At $10.269 million, I think it's a reasonable budget," Mr. Bernard said.
Apart from a new senior citizens center ($3.5 million in 2021) and the Montauk Playhouse ($1.5 million in 2021), big-ticket items include $506,000 to replace the West Lake comfort station in Montauk and annual drainage and road construction work, $300,000 and $350,000 respectively. For new police vehicles — five are rotated in and out of service annually — $200,000 is budgeted, with another $200,000 for ongoing reconstruction of Second House in Montauk. The Y.M.C.A. East Hampton RECenter likely needs its roof replaced, Mr. Bernard said, with $200,000 tentatively budgeted for it.
The town's Aaa credit rating, the highest rating Moody's Investors Service can assign a municipality, "makes amortization practical and sound," Mr. Bernard said. "Last year we sold bonds for under 1 percent, so we pay less than 1 percent on our 2020 bonds. Pretty cheap money." The town's policy to retire more debt than is issued in a given year "has helped stabilize our debt service and indebtedness," he said.
Supervisor Peter Van Scoyoc said it was "time to consider lines in the capital budget for energy sustainability and environmental sustainability," for projects that would deliver economic dividends through lower electricity costs, as well as environmental benefits.
"We could add a general line with one number that can at least be used to plug into this plan," Mr. Bernard said, "so we know we're going to be spending that money." Even if $300,000 is added to that new line, he said, the town would maintain its policy of retiring more debt than is created.
The hope is that the board will adopt the plan at its meeting next Thursday, after which Mr. Bernard and Becky Hansen, deputy budget officer, will work with bond counsel to prepare a bond issue in August. "We can advance money from the general fund to start the projects," he said.
March 15 will be "a significant day," Mr. Bernard told the board, as it will see the final deficit-bond debt service payment. "When we make that, we will have paid off all of the $22,230,000 borrowed to address the 2007-2008 general fund deficit." Deficit financing and belt-tightening have eliminated that, he said, with a $45 million surplus across all of the town's major funds.
There was one other item to report, he said — his intention to retire. "This will probably be the last time I present a budget to the town board."
From 1996 to 1999, Mr. Bernard was a board member himself. He served as budget officer under Supervisor Jay Schneiderman from 2000 to 2003, and returned to the town in 2010, working under Supervisors Bill Wilkinson, Larry Cantwell, and, since 2018, Mr. Van Scoyoc. "It's been a pretty good run since 2010," he said. "I think the town is in a really good place financially. That needs to be protected and carefully monitored as we all move forward."
But he will be busy until July, he said, working to see the capital plan adopted, bond authorizations put in place, and working with Ms. Hansen to prepare the 2022 budget formulation, among other matters.
"You've been working through multiple administrations, and I think that's a tribute to your willingness to be a team player, to work on behalf of all the residents of East Hampton," Mr. Van Scoyoc said. "We have robust surpluses, a triple-A bond rating. . . . I think a lot of it really falls on your shoulders and is a credit to you."
"Your professionalism and objectivity are hallmarks of the advice you give," Councilman Jeff Bragman said. "It's great to be able to rely on you."
"Your work ethic has been extraordinary," said Councilwoman Sylvia Overby. "Everything you've done for us as a town and employees and elected officials, what you've done for the community, it's been beyond great."
