East Hampton Town released its tentative budget last week, at $118,910,330, an increase of $8.2 million, or 7.44 percent over the 2026 budget. Once again, for the third consecutive year, it pierced New York State’s 2-percent tax levy cap.
The message accompanying the budget was slightly different, however, with a focus on the Building Department, which has seen staffing nearly double in just the past year. The proposed budget adds $730,000, from $1.8 million to $2.5 million, to the department, with full-time salaries making up $1.53 million of that total.
“A well-functioning Building Department matters to a homeowner waiting for a permit, but it also matters to the contractors, tradespeople, and local businesses whose livelihoods depend on projects moving forward,” Town Supervisor Kathee Burke-Gonzalez stated in a release. “We have been adding the staff and resources needed to strengthen the department, and this budget continues that work.”
Other increases, such as with health insurance and fuel, were more customary.
“Our community has grown, and the demand on town services has grown with it,” the supervisor said. “This budget makes sure we have the people and resources in place to keep delivering the services residents count on, from public safety and senior services to recreation, housing, and the Building Department. We also have a responsibility to be straightforward with taxpayers about what those services cost.”
They cost a lot.
At Tuesday’s town board meeting, Rebecca Hansen, the town administrator, said 61 percent of the budget goes to salaries and benefits. Most unions and staff will receive a five-percent salary bump in 2027. The town has 347 full-time employees.
“To put that in context with the tax cap, if the town was only allowed to increase the tax levy by just over $2 million and your contractual salary increases alone were just under $1.7 million, the math just doesn’t math,” Ms. Hansen said. “I mean, I have no other way to put it. It’s not reality.”
She highlighted the fact that of New York State’s 62 counties, only 12 do not share sales tax revenue with their towns. Suffolk County is one of them; it does not share its tax revenue, which is bringing it an extra $1.9 billion this year alone.
Sanitation is part of the town budget but in a separate fund. Hauling costs are increasing.
“I received a request from the department this week,” Ms. Hansen said. “They need a budget modification. To pay for September alone, they will need an additional $210,000, and that is not even to make the end of the fiscal year.”
The budget also contains three new positions, 12 promotions, and 12 requested merit pays, “for employees who have gone above and beyond during the fiscal year,” she said.
“For a home with an assessed value just over $1.3 million, and you are living outside one of the villages, your [additional] tax impact will be $96.52,” Ms. Hansen concluded.
The town maintains an AAA rating with Moody’s Ratings.
The board supported the preliminary budget, which will be adopted on Oct. 20. A public hearing to override the tax cap and another on the tentative budget will be held on Nov. 5. Per state law, the budget must be adopted by Nov. 20.
