Budget cuts force exit of Riverhead downtown BID director

The executive director of downtown Riverhead’s tax-funded business group has left the organization after its board determined it could no longer fund her full-time position.

Kristy Verity, the executive director of the Riverhead Business Improvement District Management Association since 2019, has left the organization, according to a press release Tuesday from the BIDMA’s board. 

The loss of town funding and “delays in this year’s tax fund distribution forces BIDMA to release its executive director, the only full time employee of the district, and mitigate any negative impact the restructuring may have on the organization’s progress,” the press release states.

Verity was a part-time employee from 2019-2022 and became a full-time employee in 2023 after the Town Board began supplementing the BIDMA’s budget with additional funds. Last year, the town provided $42,000 — roughly a quarter of the nonprofit’s budget — in addition to the money collected in the special taxing district that funds the BIDMA.

“Throughout her tenure, Verity served with unwavering integrity, compassion, and professionalism,” the press release said. “In 2020, Verity’s vision rebranded Riverhead BID to Downtown Riverhead (downtownriverhead.org). Her leadership and dedication consistently strengthened downtown Riverhead’s visibility and impact through outreach, events, volunteerism and cultivating vital business and civic relationships.”

In a text Tuesday, Verity thanked currently BIDMA board members for their support and the community for “allowing me to be a part of Riverhead’s journey.”

“I’m grateful for the five years I’ve had the privilege of serving downtown Riverhead,” Verity wrote. “While this chapter concludes, memories of our achievements and the relationships we’ve built will continue to inspire me.”

Verity’s salary as full-time executive director was approximately $90,000. Her salary was $50,000 at the beginning of last year but was increased in April 2024 to retain her employment at the BIDMA after announced her intention to leave, according to Verity. 

The town decided to cut the BIDMA’s budget this year because the organization no longer produces Alive on 25 and Halloween Fest, two events that draw hundreds of people downtown, Council Member Joann Waski, the Town Board liaison to the BIDMA, said at last month’s BIDMA meeting. The town hired a consultant to produce these events after the BIDMA board expressed the desire to move away from event production.

When she attended the last BIDMA meeting, Verity was already on unpaid leave because the BIDMA lacked the money to pay her salary, board members said. BIDMA board members said their top budget priority was to retain Verity as executive director, likely with a reduced salary.

However, the budget cuts made it impossible for the organization to keep Verity on the payroll, BIDMA Vice President Gary Hygom said in a phone interview Tuesday morning. The BIDMA board is still working on its 2025 budget and the executive director role is expected to revert to a part-time position, Hygom said. 

The town has refused to approve the BIDMA’s 2025 budget, citing the group’s lack of audits for 2023 and 2024. Waski said last month that obtaining financial information from the organization for past years was “like pulling teeth.” The Town Board approved a forensic audit into the group’s finances last month.

Verity and the nonprofit’s board members — composed of volunteers who own and manage downtown businesses and properties — have denied any wrongdoing and said they have complied with all the town’s requests for financial information. 

Waski was critical of Verity during last month’s BIDMA meeting, questioning her use of the nonprofit’s taxpayer funds for dining expenses and her employment outside of the BIDMA. 

Waski did not immediately return a call requesting comment Tuesday.