Riverhead's proposed $69.4M budget hikes taxes by nearly 5%, pierces tax cap

The Town of Riverhead is raising taxes by nearly 5% and piercing the state's 2% tax cap to cover the costs of additional police officers and employee benefits. 

The $69.4 million proposed budget for 2024 increases by 8.7% over last year's budget. Spending in the town’s three main funds would increase by $5.5 million, with $60.8 million allocated to the town’s general fund, $7.5 million in the town’s highway fund and $1.1 million to its street lighting fund.

The plan calls for a 4.86% tax levy hike and would increase the tax rate by 4.54%, requiring the town to collect an additional $2.4 million in taxes. The remainder of the $5.5 million spending increase would be offset by the use of $2 million in reserves and $1.1 million in estimated revenue.

Town supervisor Yvette Aguiar said the budget reflects a “careful analysis” of the town’s current economic realities in the wake of the pandemic.

“Three years later we continue to endure impactful negative monetary challenges,” Aguiar said.

Under the plan, the tax rate would rise from $59.61 per $1,000 of assessed value to $62.319. For the average Riverhead home, which officials estimate has an assessed value of $50,000, that translates to around $135 more in property taxes next year.

If approved, the budget would add five new police officers, bringing the total to 100 officers, and add one code enforcement officer for evening and weekend coverage.

Four new positions would be funded to support operations, buildings and grounds at the new Town Hall campus at 4 W. Second St., which was formally unveiled Oct. 4.

Aguiar attributed the spending increase largely to rising costs of benefits, including a 7% hike in health insurance and state retirement contributions set to increase more than 18%.

Salaries for all elected officials will remain the same in 2024.

The budget includes a 20% increase in stipends provided to appointed members on the planning, zoning and architectural review boards. Most town employees will also receive increases after the town settled labor contracts with the CSEA and PBA in 2023.

Piercing the tax cap requires approval in a separate town board vote. Riverhead’s budget for the current year also pierced the cap with a 3.31% increase.

Aguiar, who is not seeking a third term in office, said she’s “confident” her final budget addresses critical projects and town operations.

“We are fortunate to have a good financial footing. However, this does not happen by chance: it is the result of meticulous financial planning and difficult decision making,” she said.

The town board hasn't set a public hearing on the proposed budget, but must adopt a plan by Nov. 20.