Riverhead budget plan would increase tax rate 6.74%

Riverhead Town’s proposed $77.9 million budget for 2026 includes a 7.7% tax levy hike that officials say strengthens public safety while absorbing rising state-mandated employee costs.

Under the proposal, the tax rate would increase by 6.74% in 2026, resulting in annual increases of $4.50 per $1,000 of assessed property value, officials said.

That translates to 75 cents per day, about $274 a year, for a property valued at $735,000, according to Jeanette DiPaola, the town’s financial administrator. It requires the town to consider piercing the state’s 2% tax cap for the fourth consecutive year.

Supervisor Tim Hubbard unveiled the fiscal plan at a meeting Monday, describing the increases as unavoidable.

The budget boosts spending in the three townwide funds — the general fund, highway and street lighting district — by 6% over the current $73.5 million plan.

The town may make revisions to the budget proposal and has until Nov. 20 to approve a final spending plan. A supermajority of the board, three in Riverhead's case, must agree to override the cap.

Hubbard said there’s “no fat” in the budget and pinned the increases on contractual raises, rising health insurance and state retirement costs for town employees.

“There’s absolutely nothing we can do about those three items,” he said Monday. “Those three items alone pierce the tax cap.”

Staying below the tax cap would have forced 15 layoffs, he said.

Police department spending accounts for most of the $4.3 million spending increase in the town’s general fund, according to DiPaola. The town plans to spend an additional $1.8 million on police salaries, $1.1 million on police retirement costs and $98,000 in health insurance alone for police department employees, she said.

Hubbard, a retired town police detective, defended the increases and said he refused to “cut back” on public safety. He cited reduced town crime rates and a historic high of 100 police officers.

Councilman Ken Rothwell agreed, saying more police officers means quicker and more effective response times.

“We have more officers available on the roads … we’ve had more CPR saves and lifesaving actions from our men and women on the police force,” he said. “We’re giving them the tools that they need.”

DiPaola said state retirement costs rise “drastically” every year. Health insurance rates are also expected to rise by about $400,000.

“It’s very difficult — impossible — to stay within the cap just because of contractual increases," she said.

The town also plans to increase debt by $286,000 to fund planned renovations to its Justice Court, officials said.

The proposal does not increase the salaries of the supervisor or town council members, who got raises in 2025. Other elected officials, including town justices, the tax receiver, assessors, town clerk and highway superintendent, will see 3.25% raises, mirroring what town civil service employees are due in their contracts.

Riverhead denied all requests for merit-based raises in 2026 and will not add any new positions, Hubbard said. The supervisor said town employees who “go above and beyond” have in the past been rewarded with small raises.

“A lot of them, 4:30 p.m., Town Hall closes and they’re still here working in the building. Some of them come in early to get a jump on things,” Hubbard said. “I apologize that we were not able to hand out merit raises this year but we also have to be fiscally responsible to the taxpayers of this town.”