Halpin’s Riverhead budget would end four-year streak of tax cap overrides

First-year Riverhead Town Supervisor Jerry Halpin proposed a budget Thursday that would end four consecutive years of overriding the state tax cap.

The $120.96 million tentative spending plan for 2027 is slightly below this year’s $121.1 million budget, but the combined townwide property tax rate would rise 2.27%.

Last November, the Town Board overrode the tax cap to approve the 2026 budget, which raised the tax levy 7.74% and the townwide property tax rate 6.74%.

Mr. Halpin’s proposal does not include raises for elected officials, but does include 76 merit raises, nine promotional raises, six new full-time positions and two new part-time positions in the town’s general fund.

A retirement incentive program, pushed forward by Mr. Halpin earlier this year, would save the general fund $819,000 next year, helping keep the proposal within the tax cap, officials said. The supervisor said three CSEA and seven PBA members elected to take the incentive.

“We did it,” Mr. Halpin said at the special meeting at Town Hall. “What I mean by that is the department heads, my fellow elected officials, every single town of Riverhead employee, that shows up every day and works to make Riverhead awesome — the ‘it’ is the impossible that people said, but we were able to.”

The proposal still faces Town Board review, and Councilman Ken Rothwell, who is running against Mr. Halpin for the supervisor’s job in November, said members could seek a smaller taxpayer impact.

“I’ve made it clear all along that there’s no way that we would pierce the tax cap, but I think we’re going to take a closer look at it,” Mr. Rothwell said following the meeting. “Each item by item, you go through it, and we’re going to comb through it carefully, and could probably, at this point, present our own budget to review at a lesser impact.”

Although overall spending would decline slightly, spending in the three townwide funds — general, highway and street lighting — would rise $3.29 million, or 4.23%, to $81.25 million.

The combined property tax levy for those funds would increase $1.70 million, or 2.79%, to $62.88 million. The levy is the amount raised through property taxes; other revenues and reserves also support the budget.

The combined tax rate for those three funds would rise from $71.598 to $73.224 per $1,000 of assessed value. Special district charges vary by property.

The general fund — the town’s largest operating fund — would increase $2.9 million, or 4.2%, to $72.01 million.

The primary drivers of that increase are salaries, payroll taxes, state retirement costs, health insurance and IT software and equipment, officials said. However, financial administrator Jeannette DiPaola said these increases are partly offset by lower debt service and the retirement incentive savings.

Breaking down those savings, Ms. DiPaola said there is a decrease of $746,000 in payroll and salaries and a $341,000 reduction in state retirement contributions. A $268,000 increase in retiree health insurance costs brings the net savings to $819,000.

Replacement positions to fill the retirees’ spots are also budgeted for next year, Ms. DiPaola said.

Of the 76 employees receiving merit raises, 64 would move up two additional steps on the salary schedule in 2027, Mr. Halpin said.

Those increases would come on top of their normal contractual raises. The aim is to improve retention in departments that have struggled to keep employees, including buildings and grounds, highway and seniors.

The new positions in the 2027 tentative budget include a maintenance mechanic, two buildings and grounds staff, an automotive equipment operator, a building inspector, a purchasing clerk, an office assistant, and a fire marshal.

“The goal of this Tentative Budget is clear: provide financial relief for tax payers while bolstering opportunities for increased employee retention at the lower end of the pay scale,” Mr. Halpin said. “I believe this budget addresses both goals.”

The Town Board can revise the proposal before advancing a preliminary budget to a public hearing, which must be held by Nov. 5. The deadline to adopt the final budget is Nov. 20.

The full 2027 tentative budget is available on the town’s website.