Town Board adopts budget amendments trimming supervisor’s proposed tax levy increase

The Riverhead Town Board adopted six amendments to Supervisor Jerry Halpin’s proposed 2027 budget Tuesday, reducing the proposed townwide property tax levy increase from 2.79% to approximately 1.73%.

The amendments proposed by Council Member Ken Rothwell reduce the proposed levy by $643,858, to about $62.24 million. They rely on higher revenue estimates and shifting equipment purchases to reserves, while adding funding for employee raises and a possible dental insurance upgrade.

Five resolutions passed 4–1, with Halpin abstaining. The street lighting amendment passed unanimously. Council Members Bob Kern, Denise Merrifield and Joann Waski joined Rothwell in passing all six measures.

Merrifield credited the “Republican board” with reductions she called “a great benefit to the town.”

Halpin defended his proposed budget, which was already within the state-mandated property tax cap. He questioned the amendments’ financial assumptions and political motivation. Rothwell is challenging Halpin for supervisor in this year’s election.

“I feel like this is rooted in political motivation,” Halpin said, noting that a political party had been mentioned during the votes.

The first amendment removes $158,300 for buildings and grounds equipment, fire marshal equipment and refuse vehicles from the General Fund budget, reducing the levy by that amount. Separate resolutions would authorize purchases from fund balance in 2027.

“So the equipment is going to be purchased,” Rothwell said. He cited $4.8 million in investment earnings on town reserves last year as a reason to reduce the amount collected from taxpayers.

Halpin disputed treating the purchases as one-time expenses, saying the town buys equipment and vehicles every year.

“This type of budgeting can come back to bite us in years ahead,” he said, pointing to the town’s previous reliance on reserves to support its budget.

The largest levy reduction comes from increasing estimated General Fund revenues by $465,941: $165,941 in building inspection fees, $250,000 in interest earnings and $50,000 in fines and forfeited bail. That amendment reduces the proposed levy by $395,941 and the amount of appropriated fund balance by $70,000.

“It’s an adjustment on interest earnings so that we’re not overtaxing,” Rothwell said.

The street lighting amendment removes $42,937 in equipment spending, with purchases instead to be funded from reserves, and increases estimated interest earnings by $48,629. Together, those changes reduce the district’s proposed levy by $91,566.

Halpin joined the council members in supporting that amendment.

“I think this is a risk, but I agree. We’ve been overtaxing street lighting for years, so yes,” he said.

Two amendments address Highway Department compensation. One adds $1,949, including benefits, for an administrative employee’s merit increase, raising the General Fund levy by that amount. Another transfers $5,392 from snow contractual spending to cover a promotion, a merit increase and related costs without changing the levy.

Rothwell said the compensation adjustment addressed employees who had not been receiving increases. Halpin said everyone in Town Hall deserved a raise and questioned selecting particular employees. He also said Rothwell had previously argued against reducing the snow account.

The sixth amendment provides $120,000 for a possible change in CSEA employees’ dental insurance. Higher revenue estimates and a $25,371 transfer from highway equipment fund the additional appropriations without increasing the levy.

Rothwell said the amendment makes funding available, while a contract change would still require negotiations and the supervisor’s action.

Halpin said the proposal “does not fully capture the cost of what you’re trying to accomplish.” He said moving employees off the existing plan could increase its costs and that the proposal excluded other unions and nonunion employees.

No one addressed the budget amendments during the public comment period on resolutions.

The amended spending plan is now the town’s 2027 preliminary budget. A public hearing is scheduled for Nov. 4.

Under state Town Law, the board may make further revisions after the hearing and has until Nov. 20 to adopt the annual budget. If it fails to act by then, the preliminary budget, including any further board amendments, becomes the final budget by operation of law.