Tax hike part of Riverhead budget plan

Declaring that Riverhead's efforts to live within the state's 2 percent tax cap cannot be sustained, Supervisor Sean Walter on Friday presented a proposed 2013 budget that is $1.4 million less than the current budget, but still requires a nearly 3 percent increase in local taxes.

It meets the state cap because much of the money from the extra tax will go to expenses specifically exempted from the limit, such as extra money required for retirement funds.

"We're not cutting fat, we're cutting bone," Walter said.

He added that Riverhead would face a 14 percent tax increase if it couldn't use about $3 million from the town's $9 million reserve fund, and that only massive new growth in the town would solve the problem. "We have three years left," he said.

Walter's proposed budget, $88,932,000, compares with the current one of $90,374,000. It would raise the general fund tax levy -- the amount of money paid by all town taxpayers -- from $37,831,301 to $38,945,400. Garbage collection fees -- a separate bill not included in the town tax rate -- would decrease from $356 per household to $270.

The budget also calls for the elimination of three jobs, a savings of $638,100 in salaries. The positions are the director of the town youth bureau, a senior town investigator and one personnel officer.

The town has about 300 full-time employees.

The town board -- Walter is one of five town board members -- will review the budget and vote on any changes they propose. "We haven't seen it yet," Councilman George Gabrielsen said. "I'd like to tweak it a bit."

Walter said he would like the board to find the money to bring back one of the three eliminated positions as a part-time job.

Walter said revenue next year will essentially be flat, while cost-of-living expenses will keep rising. He said two major construction projects, a Costco and Walmart, might increase the town tax base, but that assessment appeals could offset that gain.