Dan's Papers - July 4, 2008 - EH Gets Bond Break, Signatures Mount Against McGintee

Let's face it. Things just are not going smoothly these days for East Hampton Town Supervisor Bill McGintee, and therefore, for the town itself.

Remember those heady days not so long ago, when the town was $12 million dollars in the black, and EH Town had an Aa1 credit rating - the highest and strongest bond rating on the Island? Granted, economic issues aren't always dinner conversation, but once it become public knowledge that now, in 2008, that once-healthy surplus dwindled to a debt that the State Comptroller's Office considers to be in excess of $14 million, and that perfect credit rating tumbled four tiers - in one report - the actions of the Town Supervisor have started people talking.

However, this past week ended as a positive for Democrat McGintee, as East Hampton Town gained permission from the State Legislature to borrow up to $15 million through bonding to repair the deficit, with a promise kept by a member of the opposing party.

In these pages, Assemblyman Fred W. Thiele, Jr. (R, I, C - Sag Harbor) stated: "This is clearly a local decision as to how to close this deficit. [state] Senator [Kenneth P.] LaValle and I certainly are available to assist the Town in any way they wish."

True to his word, the two representatives sponsored bills in their respective legislative bodies that would give EH Town special permission to pay off its deficit through borrowing, both passing the Assembly and the Senate. If signed by the governor, these items would become law...but with stipulations.

According to the legislation, EH Town would be subject to state scrutiny for the life of any bond, which could be as long as 10 years. Furthermore, the town must deliver quarterly budget reports to the state comptroller, as well as copies of its proposed annual budgets, plus offer a three-year financial plan, notification of any plan to borrow money, all finalized with a requirement that the comptroller confirm and certify the amount of the town's deficit before any bond may be issued (McGintee claims the town's deficit is actually only between $9-10 million).

But that may not be enough to relax the pointing fingers. McGintee took some major heat at the most recent town board meeting. A crowded room of onlookers watched as Independence Party Chairwoman Elaine Jones took the Town Supervisor to task. Jones took the podium with fervor, criticizing McGintee for an issue involving unused sick time compensation earned by her late husband, actually tearing up the town-offered settlement that she feels was calculated unfairly. Her efforts to have an impact on McGintee didn't end there, as she has been circulating a petition around town, referencing recent financial infractions, and urging the supervisor to step down from his post. Could this actually work? According to Jones, "Well I don't think he's going to go...but we are discussing how to go about removing him. I'll have to go to the Supreme Court, and I'm currently seeing a lawyer on what [our options] are."

She's looking for 1,000 signatures, which she feels confident will be achieved. 1,000 people against anyone on the town level can be an important factor, especially if they arrive en masse at the voting center.