East Hampton council approves supplemental appropriations, sets schedule to finish FY2027 budget

The East Hampton City Council on June 17 approved a package of supplemental appropriations and procedural transfers and set dates for final budget action, advancing a range of capital and operating needs while scheduling the finance committee to reconcile remaining FY2027 appropriation lines.

The votes came during a long public hearing in which councilors considered requests to move one‑time funding from free cash or enterprise reserves into accounts to cover legal bills, payroll taxes, Conservation Commission and CPA projects, water/sewer reserves and other shortfalls. Chair Tom Peak said the finance committee will meet Tuesday, June 23, and the full council will continue the budget discussion Wednesday, June 24.

Why it matters: the motions address immediate contract and service obligations and fund small capital projects that officials said could not wait until the new fiscal year. Several residents used the hearing to press for more line‑item detail before the council approves additional appropriations.

Among the items approved: a $20,000 transfer from free cash to cover remaining Medicare payroll tax obligations (school $14,000, city $6,000); a $10,000 transfer to cover outstanding city legal bills; $135,000 in CPA funding for a Natuck Park dog park; $44,100 in CPA funds to renovate the Muttersfield (Brickyard Brook) accessible trail; and a $50,000 enterprise transfer to purchase 10 fire hydrants and couplings.

Treasurer Johnson explained the Medicare appropriation at the hearing: “The Medicare is a 50/50. 50% pay paid by employees, 50% paid by us,” and said the school portion is budgeted as level‑service; the appropriation covers timing and balloon‑payout payroll events that are known only in late spring.

Mayor Derby defended the $10,000 request for city attorney expenses as part of recurring legal needs after the council reduced the attorney line during budget deliberations. “We’ve averaged $103,000 a year in legal fees over the last three years,” the mayor said, adding that the current request should close out the year’s outstanding bills.

On capital projects, the council backed a $135,000 CPA appropriation for an East Hampton dog park in Natuck Park. Joan Curts, president of Friends of East Hampton, told councilors the nonprofit and private donors have already raised large contributions toward the project; councilors noted a reported $200,000 private gift and in‑kind fundraising that will leverage the CPA allocation.

Councilors also authorized $44,100 for Muttersfield trail renovations. Pascomac/Piscataic Conservation Trust representatives described plans to replace deteriorated wood edging with composite materials, remove invasives, add native plantings and build a permanent pedestrian bridge at an eroded culvert crossing.

Public‑works funding included a $50,000 transfer to replace and stock 10 hydrants. DPW leadership told the council the price of a single hydrant has risen from roughly $1,800 when many were first installed to more than $4,000 today, and that five of the requested replacements are out of service and five will be kept in inventory.

Smaller transfers approved included $3,500 to recycling to cover hazardous waste disposal costs and a $2,917.69 transfer for long‑term landfill monitoring and compliance at two closed sites. Council also authorized administrative transfers — consolidating years of district improvement financing (DIFF) receipts into a dedicated DIFF revenue account, moving $650,000 of enterprise retained earnings into an enterprise stabilization reserve for future water/sewer capital work, and transferring PEG access revenues to the PEG expense account to settle an accumulated distribution timing issue.

A $55,000 free‑cash request to cover a fuel shortfall drew the most questioning from councilors and members of the public, who asked for department‑level breakdowns of diesel versus gasoline use and which buildings still use heating oil. Director Nettleman said the city tracks gallons and that the city had to buy over contract quotas because of higher usage and price spikes; two councilors recorded abstentions on that vote rather than a “no.”

Votes at a glance (selected): - $20,000 (free cash → Medicare payroll taxes): approved - $10,000 (free cash → city attorney professional expenses): approved - $135,000 (CPA undesignated → dog park construction, Natuck Park): approved - $44,100 (CPA reserve → Muttersfield renovations): approved - $50,000 (enterprise retained earnings → fire hydrants): approved - $55,000 (free cash → fuel account): approved (two abstentions recorded) - $650,000 (enterprise retained earnings → enterprise stabilization): approved

What’s next: councilors left a final vote on the overall FY2027 appropriation to meetings next week so finance can complete impact‑bargaining adjustments and reconcile line details. The mayor and department heads were asked several times to provide more granular billing and usage data at future hearings.

The finance committee meets June 23; the council will continue the public hearing on the budget at 6 p.m. on June 24 in council chambers.