Ritzy Town Hikes Taxes to Cut Deficit
East Hampton trustees raising property taxes by 24 percent
Sunday, Nov 23, 2008 | Updated 12:03 PM EDT
AP
East Hampton is known for being home to some of the rich and famous, but the ritzy town hasn't escaped the economic troubles that have struck homeowners and towns across the nation.
Trustees of an eastern Long Island town where some of the world's most rich and famous converge every summer are raising property taxes by about 24 percent to help cut a $15 million deficit.
The East Hampton Town Board approved a $68.5 million spending plan on Tuesday night by a 3-2 vote.
Town Supervisor Bill McGintee has said rising health care costs for employees and waning tax revenues because of the downturn in the real estate market led to a huge deficit over several years.
Opponents contend mismanagement and overspending are to blame. The town has borrowed the $15 million to close the deficit, but will see higher debt service fees in 2009 because of it.
East Hampton has about 21,000 year-round residents; the population swells to 90,000 in the summer.
Copyright Associated Press
