Red Hook Proposes $5.25 Million Budget for 2026 with Key Increases

In a recent meeting on October 22, 2023, the Town Board of Red Hook, New York, began reviewing a proposed budget of $5.25 million for the fiscal year 2026. This budget represents a 9.87% increase, amounting to $471,742 compared to the previous year. The proposed property tax levy stands at $2.41 million, reflecting a 3.56% increase of $82,946.

During the discussions, Supervisor Robert McKeon highlighted that the majority of the spending increase is attributed to four grants totaling $343,560. One of the significant areas of expenditure is police costs, which have risen by 16.33%, adding $20,000 to the budget, bringing the total to $142,500. McKeon emphasized the importance of competitive pay to retain officers within the village. “We’ve got a very good crew there and I want to make sure that they are not attracted to positions outside of our community because the pay scale is not competitive here,” he stated.

The budget also anticipates revenue from cannabis sales tax, estimating $80,000, with half allocated to the village. McKeon commented on the unpredictability of this revenue stream, saying, “I never thought I’d be trying to predict the budget line for cannabis. Yes, it is more than I anticipated that it would be, but it’s new. So, I don’t have a lot of confidence in that number.”

In addition, McKeon addressed costs related to an eminent domain lawsuit involving the Red Hook Boat Club. He indicated that the $75,000 earmarked for attorney and consultant fees reflects a 15.38% increase of $10,000. “It’s more complicated than that. If there’s a negotiated settlement, it could come from other funding,” he explained.

Salary adjustments are also proposed, with a 2.75% increase for the supervisor, bringing the total to $64,196. Four Town Board members will see their salaries rise to $10,342 each, while the clerk’s salary is set to increase to $66,498. Justices will earn $21,269 following a $569 increase, and the highway superintendent will receive $78,096, an increase of $2,090.

Key changes in the budget include:
– Sales tax revenue projected at $720,000, a 5.88% increase of $40,000.
– Bond payments at $442,383, reflecting a slight decrease of 0.03%.
– Road improvements budgeted at $412,800, with a minor increase of 0.06%.
– Anticipated snow removal costs at $367,187, showing a 0.77% decrease.

Other notable adjustments include a 25.18% increase in state retirement contributions, rising to $174,000, and recycling costs expected to reach $151,570, an 8.34% increase. Meanwhile, building permits are projected to decrease by 10.5%, totaling $115,000.

The Town Board plans to release revisions to the spending plan ahead of a public hearing scheduled for 7 p.m. on November 5, 2023, at Town Hall, located at 7340 S. Broadway.