The Storyline

Money

Taxes, the grand list, land sales, and where the town's money goes.

The story so far

The council dropped a homestead tax exemption in August, moved $593,400 in unexpected revenue into capital projects in September, and approved up to $727,850 in lease financing for six purchases.

Public works puts fixing the worst roads at $15 million to $20 million, money that would compete with a new fire station, fire trucks and a school heating project.

MoneyThe Vote

$593,400 in unexpected revenue goes to capital projects

The council votes 5 to 1

Ayes 5Nays 1

Last year's revenue came in $593,400 above budget, from investment income, tax collections, interest on taxes and conveyance taxes. On Sept. 8 the council moved that money into the Capital Reserve Fund for this year's capital projects.

A council member said the transfer should need a town meeting; the town manager said the council and Board of Finance have the authority. Ted Hintz Jr. voted no. Tim Feegel was absent.

The money goes to this year's planned capital projects without a town meeting.

Town Council minutes, Sept. 8, 2026. Read the minutes

MoneyWhat happened

Homestead tax exemption is off the table

The council decides it is not worth pursuing

A homestead exemption lowers the taxable value of owner-occupied homes. The council dropped the idea on Aug. 11 without a vote; its minutes say the item "is off the table." Staff's rough estimate for a 22.5% exemption: about $200 million off the grand list, the town's total taxable value, and a mill rate, the tax per $1,000 of value, a few dollars higher.

Two residents raised concerns at the meeting, one warning the cost would shift to retirees, renters, small businesses, undeveloped land and car owners. Members raised the same concern. New Milford was cited as the only Connecticut town known to have adopted one.

Homeowners will not get this break, and other taxpayers will not pick up the difference.

Town Council, Aug. 11, 2026. Watch

By the Numbers

$727,850

Borrowed over as long as 10 years for six purchases

The council on Sept. 22 approved lease financing, a loan repaid in yearly installments, of up to $727,850 over no more than 10 years for: a $235,850 boiler for Memorial School, $150,000 to replace the middle school gym heating and cooling, a $130,000 public works truck, a $115,000 public works Bobcat loader, a $62,000 fire command vehicle and a $35,000 building department vehicle.

This year's budget holds $115,000 for the first payment. Yearly payments will run about $90,000 to $122,000, depending on the term and the rate.

The purchases are paid for over years, with interest.

Town Council, Sept. 22, 2026. Watch

$15 million to $20 million

What it would take to fix East Hampton's worst roads

The town has 82 miles of paved road and 10 of gravel. Public Works Director Matthew Walsh told the Board of Finance on Sept. 21 that 15 miles need major rehabilitation and 21 need minor work. Fixing those while keeping 42 miles of routine-maintenance roads from slipping would take up to five years, about 10 miles a year, at $15 million to $20 million.

Daniel Street moved into the worst category after the Wopowog bridge replacement pushed its work back.

Roads are competing for the same capital money as a new fire station, fire trucks and a school heating project.

Board of Finance minutes, Sept. 21, 2026. Read the minutes