Town board approves tax cap override, amends proposed budget to increase 2023 town-wide tax levy by 4.5% over this year

(Updated) The Riverhead Town Board today approved eight amendments to Supervisor Yvette Aguiar’s proposed 2023 budget, bringing the total town-wide tax levy to $50,188,600 in 2023, an increase of 4.51% over the 2022 tax levy — exceeding the state-imposed 2% tax levy cap by just over 2.5%.

If adopted in its current form, the 2023 budget will increase the town-wide tax bill on an “average” home by $120.45 over 2022, according to Riverhead Financial Administrator William Rothaar. An “average” home is one with an assessed value of $50,000. Real property in Riverhead Town is assessed at about 10.14% of its market value, according to the Office of the State Comptroller.

The tax rate in the proposed budget, with the amendments adopted today, is $59.613 per $1,000 of assessed valuation— up from $57.204 in 2022, a 4.21% tax rate increase.

The town-wide tax increase does not tell the whole story of the town tax increase, however, because the  “town-wide” funds are only part of the total tax bill paid by property owners. While the three town-wide funds — the general fund, the highway fund and the street lighting fund — are paid by all property tax payers in the town, other funds are paid out of assessments against certain types of properties or those located within certain districts. For example, the refuse and garbage district fund is paid out of assessments against residential properties — not including condominiums, apartments and commercial properties —  in the town’s garbage districts. Other funds include the ambulance, water and sewer districts, which are paid by assessments against properties in those districts. 

The supervisor had proposed a spending plan that would have required the town to pierce the the 2% cap by 1.31%.

The budget amendments put forward by council members provide additional spending to cover the cost of electricity for the new domed ice rink at Veterans Memorial Park ($150,000), two additional highway department personnel ($196,000), a fire inspector in the fire marshal’s office, a new tractor for the buildings and grounds division ($90,000), the addition of a recycling coordinator ($28,100) and a salary increase for the town board coordinator. Three-fourths of the cost of the new recycling coordinator will be paid out of a combination of state aid and the refuse and garbage district.

Last week, an irate Aguiar accused board members of “blindsiding” her with six budget amendments included in the resolution packet for discussion at Thursday’s work session. Two more amendments were added to the resolution packet for consideration today.

Today, Aguiar voted without comment to approve all but one of the amendments. She voted no on the amendment to fund a raise for the town board coordinator. After the meeting, Aguiar said she did not support the raise because the board members did not follow established process for salary increases. She said the raise was “political.”

The board unanimously approved a local law authorizing RIverhead to override the 2% property tax cap. 

The property tax cap was enacted by the state in 2011 and took effect in 2012. The cap limits the annual growth of property taxes levied by local governments and school districts to two% or the rate of inflation, whichever is less. The cap can only be overridden by local law.

The board may amend still amend the budget. Under state law it can be amended by board vote after the budget hearing and until its adoption by the board. State law requires the board to adopt a final budget for the coming fiscal year no later than Nov. 20.

Editor’s note: This article was updated with information about the town wide tax rate resulting from budget amendments adopted Nov. 1. The information was not immediately available after the Nov. 1 Town Board meeting.