Riverhead proposes 6.74% property tax spike, as town pierces state cap for fourth straight year

Riverhead will pierce the state tax cap for the fourth consecutive year — hiking the town-wide tax rate 6.74% under Supervisor Tim Hubbard’s tentative 2026 budget released Monday, Sept. 29.

Mr. Hubbard blamed the increase on unavoidable health insurance premiums, state retirement rates, and contractual police raises that would have otherwise forced elimination of nearly 15 town positions.

The tax hike will cost homeowners about $4.50 per $1,000 of assessed property value. For a home assessed at $300,000, that translates to roughly $1,350 more per year in town taxes. A $500,000 home would see an annual increase of about $2,250.

The increase affects only the town portion of property tax bills. School taxes, county taxes and special district fees are calculated separately.

“There’s absolutely nothing we can do about those three items — those three items alone pierced the tax cap,” Mr. Hubbard said during Monday’s budget presentation, referring to health insurance costs for over 300 town employees, rising state retirement contributions and negotiated police department raises.

The budget exceeds the state’s 2% tax cap by approximately 4.63%, resulting in an increase of 75 cents per day for a home valued at $735,000. Residential waste collection will increase by just one cent per day, or 30 cents monthly.

All taxing districts except the General Fund remain within the tax cap limit, Mr. Hubbard stressed. The school and library districts account for 54.63% of total appropriations, while Riverhead Town represents 26.53%.

To minimize the tax cap breach, town officials denied all merit raise requests and added no new positions for 2026. The only salary increases approved were for civil service promotions and a 3.25% raise for elected officials excluding town board members, matching contractual increases for CSEA employees.

“We have some marvelous workers for the Town of Riverhead, truly dedicated, go above and beyond on a daily basis,” Mr. Hubbard said. “I apologize 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.”

Despite budget pressures, Mr. Hubbard refused to cut public safety spending, maintaining the Riverhead Police Department’s “historic high” of 100 sworn officers. Police department salaries and retirement contributions comprise roughly $2.9 million of the $4.3 million General Fund spending increase.

“I will not cut back on public safety,” Mr. Hubbard emphasized, noting the budget actually reflects reductions of $319,009 in equipment and $216,000 in vehicle expenditures. “There is no ‘fat’ in this budget.”

Mr. Hubbard said Riverhead joins most other Suffolk County municipalities in being forced to exceed the tax cap, calling out the current system.

“There are discussions going on with the Suffolk County Supervisors Association … We discussed that the tax cap is way out of whack,” he said, suggesting potential advocacy for state-level changes.

The supervisor praised increased Town Board participation in the budget development process, with each member serving as liaison to different departments and attending budget meetings.

“It has been so much better having the whole town board participate in the process,” Mr. Hubbard said. “The board has a better understanding of the budget itself overall, and they were also able to participate in it.”

The final budget for 2026 must be approved by Nov. 20.