East Hamptonites outraged over town's $30M debt
Suffolk County District Attorney Thomas Spota speaks during a press conference announcing a grand jury's findings on the business practices of the Town of East Hampton under former Supervisor William McGintee. (June 22, 2010) Credit: KEVIN P. COUGHLIN
East Hampton does not do outrage well.
In a small town with elegant manners, very wealthy property owners whose names sometimes appear in boldface in gossip columns, and a very well-manicured appearance, outrage does not come easily to either the man in the street or officials in Town Hall.
But Tuesday, it came to the surface, over a town debt that has grown to half the size of its annual budget.
"The whole thing is a whitewash," said Manny Fresco, 58, of Springs, when he learned that former Town Supervisor William McGintee had resigned last October under pressure from Suffolk prosecutors investigating the massive mismanagement of town funds, which took East Hampton from a surplus of close to $10 million to a debt of at least $30 million.
McGintee did not respond to requests for comment.
Ted Hults, the town's former budget chief, received a conditional discharge Monday after pleading guilty to securities fraud and official misconduct charges related to the town's financial condition. He, too, declined to comment to reporters.
Monte Farber of East Hampton blamed the debt on "the town going on a spending spree like there's no tomorrow. . . . I'm indignant. I feel powerless," he said.
With a town budget of about $70 million, the 22,000 year-round residents face years of paying off bonds to cover the deficit. Officials have already rejected a one-time tax increase that would add $1,500 to a typical tax bill.
Instead, by using bond anticipation notes and long-term bonds, the town will likely be adding $160 a year to the tax bill for the next 10 years on a house worth $1 million.
Town Republican leader Chase Duryea, whose party ran against McGintee's record in office last year - even though McGintee was not on the ballot - said she and town residents are shocked.
"He is culpable in every way, morally and practically," Duryea said of McGintee. "Nobody can believe it."
Current Town Supervisor William Wilkinson, a Republican who will have to resolve the debt issue, said there is no question that the townspeople are unhappy.
"We keep our opinions to ourselves, but there is a lot of anger on this issue," he said. "I have to live with six years of mismanagement."
