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

RED HOOK, N.Y. – The Town Board is reviewing a proposed budget of $5.25 million for 2026, which reflects a 9.87% increase, amounting to $471,742. This budget was discussed during a meeting on October 22, 2023, as officials aim to address various community needs while managing rising costs.

A significant aspect of the proposed budget is a property tax levy of $2.41 million, which marks a 3.56% increase of $82,946. Supervisor Robert McKeon highlighted that much of the increased spending is attributed to four grants totaling $343,560.

Budget Priorities and Police Funding

Among the notable changes is an allocation of $142,500 for police costs, which represents a 16.33% increase of $20,000. McKeon emphasized the importance of competitive salaries to retain officers, stating, “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.”

The budget also anticipates $80,000 in revenue from cannabis sales tax, with half of that amount designated for the village. McKeon expressed caution regarding this estimate, noting, “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.”

Salary Adjustments and Other Budget Changes

Proposed salary increases include a 2.75% rise for the supervisor to $64,196, which includes an increase of $1,718. Other adjustments include increases for Town Board members to $10,342 each, clerks at $66,498, justices at $21,269, and the highway superintendent at $78,096.

The proposed budget includes changes in several other key areas:
– Sales tax revenue projected at $720,000, a 5.88% increase of $40,000.
– Bond payments set at $442,383, reflecting a slight decrease of $129.
– Road improvements budgeted at $412,800, an increase of $238.
– Snow removal costs decreasing by 0.77% to $367,187.
– Hospital and medical insurance costs down by 0.64% to $238,100.

Other noteworthy items include increases in state retirement contributions by 25.18% to $174,000, and recycling costs rising by 8.34% to $151,570. Conversely, there will be a 10.5% decrease in building permits to $115,000.

Revisions to the budget are expected to be shared prior to a public hearing scheduled for 7 p.m. on November 5 at the Town Hall located at 7340 S. Broadway. As the Town Board continues to refine the budget, residents will have the opportunity to voice their opinions on the proposed financial plan for the coming year.