Riverhead Republicans introduce smaller tax hike, sparking budget preelection budget clash

Riverhead Republicans are challenging Supervisor Jerry Halpin’s tentative budget for next year, which would raise the tax levy by 2.8%, with a counterproposal that includes a smaller increase.

Four council members who together hold a majority on the board approved budget amendments on Tuesday that would raise the town-wide tax levy by 1.7%. The Republican plan relies more on surplus funding and revises several revenue projections to balance the budget. Both plans fall within the state tax cap limit.

Councilman Ken Rothwell introduced the six amendments about a month after Halpin floated his $81.2 million spending plan for 2027. Halpin's budget remains within the cap, the first town spending plan to do so in four years.

Rothwell is running against Halpin, an Independent elected on the Democratic line last year, for supervisor on Nov. 3. Last month, he said he planned to “comb through” Halpin’s proposal and present an alternative.

Rothwell’s proposal would raise about $640,000 less in tax revenue than Halpin's. His plan draws on higher than expected investment earnings.

“That money belongs to the taxpayers,” Rothwell said in an interview. “Our fund balance is plenty, and we don't need to keep adding to it … we would be overtaxing residents, and we cannot do that.”

Halpin defended his budget and characterized the amendments as politically motivated.

“I just want to know where this movement was when I was a taxpayer,” Halpin said during Tuesday's meeting. He added that he is concerned the amendments will pull needed funds away from the highway department and surplus.

With the amendments factored in, the projected tax increase would be $55 per year for a home assessed at $800,000, according to town financial administrator Jeanette DiPaola. Halpin’s initial proposal would carry a roughly $101 increase for a home with the same market value.

'Come back to bite us'

The first amendment uses surplus funds to cover $158,300 in equipment rather than the general fund.

Rothwell said the surplus will cover these “one-time purchases,” though Halpin pushed back and said the town buys those items annually.

“This type of budgeting can come back to bite us in the years ahead,” he said. Halpin cited the town’s 2022 budget, which did not raise the tax levy and instead relied on $2 million in surplus funding to balance the budget.

The board also reduced the tax levy $395,941 by increasing revenue projections for building inspection fees, interest and earnings and fines and allocated $120,000 for potential changes to employees' dental plans using increased revenue. It also relies on a $25,371 transfer from the highway equipment fund.

Other amendments included adding $1,949 for a merit raise for an administrative highway department employee and moving $5,392 out of the snow budget to cover a promotion and merit raise for two employees.

Halpin abstained from all but one of the amendments. He voted to support lowering the tax levy by $91,566 to fund street-lighting equipment using surplus from the street-lighting fund and interest earnings.

Flashpoint in supervisor race

Town taxes have become a flashpoint in the supervisor’s race and was the subject of a political text blast sent by the Suffolk County Republican Committee on Wednesday.

The text claims Halpin’s plan “will take more money out of hardworking families’ wallets” and says taxpayers “deserve fiscal responsibility.”

Last year, under Republican Supervisor Tim Hubbard's administration, the town hiked the tax levy by 7.7%. Rothwell, who voted for that plan, said he stands by the decision. He cited a “volatile market” with unknown factors including interest and health insurance rates. Halpin defeated Hubbard last year in a razor-thin race.

“We did plan for the worst, which unfortunately meant raising taxes last year,” Rothwell said. He said he thinks the town has reached a “plateau” and does not need to pierce the cap for the foreseeable future.

Halpin said the budget he presented is “healthy” and said he is open to “good ideas” from his Republican colleagues.

“I did vote for one of their amendments because I do believe that we’ve overtaxed for years in street lighting,” he said, adding his frustrations with town taxes are what drove him to run for office. “If my presence has annoyed them so much that they’re finally taking a hard look at the budget, then I’m glad I’m here.”

A public hearing on the 2027 budget will be held at Town Hall at 2 p.m. on Nov. 5 — two days after Election Day.