Bill McGintee Resigns
By Joanne Pilgrim
(Oct. 5, 2009) With a letter submitted Monday morning to the town clerk, East Hampton Town Supervisor Bill McGintee resigned his post, effective immediately.

     The supervisor has been the subject of an investigation by the Suffolk district attorney into the financial practices of the town. In May, the former town budget officer, Ted Hults, was arrested and charged with nine counts, including seven felonies, of financial misconduct.

     Mr. Hults had resigned just weeks before his arrest. In his sworn statements to the Suffolk district attorney, Mr. Hults said that Mr. McGintee had been aware of actions such as borrowing from the community preservation land-acquisition fund to cover general budget shortfalls, and of inaccurate statements submitted in conjunction with bond issues.

     Much speculation has centered on whether the next town official to be arrested would be Mr. McGintee, who was named by District Attorney Thomas J. Spota, at a press conference after Mr. Hults's arrest, as the subject of an ongoing investigation.

       "There is an active, ongoing, grand jury investigation of the Town of East Hampton. The grand jury will determine the resolution of this investigation. We have no further comment," Robert Clifford, a spokesman for the district attorney, said in an e-mail.

     Reached by phone this morning, Mr. McGintee's attorneys, Marc Mukasey and David Shargel of the Manhattan law firm Bracewell and Giuliani, declined to comment. Mr. Mukasey, who was with Mr. McGintee in his office at Town Hall, responded to a call for Mr. McGintee, saying that he was advising his client not to make a statement at this time.

     However, in his letter of resignation, Mr. McGintee wrote, "Ending this matter allows me to provide ongoing assistance to the district attorney's office as its investigation continues, and to spend more time with my family." In closing, after expressing thanks to "those who have supported me during my time as supervisor," Mr. McGintee wrote that he also wanted "to thank the district attorney for allowing me to resolve this matter."

     Mr. Hults's case has not been resolved; an appearance before East Hampton Town Justice Lisa R. Rana is scheduled for Nov. 5. He was released after his arrest on his own recognizance and was said to be cooperating with the district attorney.

     Following standard protocol, Mr. McGintee submitted a tentative 2010 town budget by the state-imposed deadline on Wednesday. The $71.8 million budget calls for a 10-percent tax rate increase for residents of the town and an 8.8-percent rate increase for East Hampton Village residents. The town board is expected to review and possibly revise the budget in upcoming work sessions before its adoption by Nov. 20.

     East Hampton is facing a rising multimillion deficit. Certified by the state comptroller's office as of the end of 2007 at $10.8 million, it is expected to rise to more than $20 million as a result of budget deficits in 2008 and 2009.

     "Although much has been accomplished during my tenure as supervisor," Mr. McGintee wrote in his resignation letter, the past two years have been fiscally difficult for the town. As supervisor and the town's chief fiscal officer, I accept responsibility for the position we are now in."

     Mr. McGintee, a former East Hampton Town police lieutenant, wrote that he had "devoted my entire professional career to the Town of East Hampton," adding, "I believe that resigning now is in the town's best interest."

     As deputy supervisor, Town Councilman Pete Hammerle will become acting supervisor until January, when the winner of next month's election takes office. Mr. Hammerle was called at home Monday morning by Town Clerk Fred Overton, after Mr. Overton received the resignation letter and met briefly with Mr. McGintee after arriving at Town Hall.

     According to Mr. Hammerle, Mr. McGintee said that he had wanted to step down, but wished to finish preparing the tentative budget first.

     "We're just going to try to carry on as a board, and get through the budget," Mr. Hammerle said. He said he will meet with town department heads this afternoon to assure them that there will be "no significant change and that everything will be fine."

    "There's three months to go before there is a new administration," Mr. Hammerle said.