Most to see tax decrease in proposed Hempstead budget

Hempstead Supervisor Laura Gillen has proposed a $444 million budget for 2019 that carries a 0.74 percent increase, but most town residents will see a slightly smaller tax bill, she said.

The budget proposal adds $2 million to the town’s tax levy, with taxes going up in four of the town's 24 special districts, but Gillen’s administration said that 83 percent of residents will see a tax reduction by $14, lowering the average residential tax bill from $760 this year to about $745 in 2019.

“This is a fair and balanced budget that keeps essential services intact and in line with spending, while continuing to take strides in restoring our fund balance,” Gillen said in her budget message. “We accomplished this goal by first identifying the town’s ‘needs’ versus a host of ‘wants,’ and by carefully reducing certain expenses including postage, overtime, part-time and seasonal costs.”

Town board members delayed approving the tentative budget last week. The Republican majority board voted 5-2 to delay the vote and instead schedule a special Oct. 15 meeting to approve the tentative budget and set a pair of hearings for Oct. 23. The budget must be passed and presented to the state by Nov. 20.

Some council members took issue with Gillen’s budget, which does not include a budget for a board-appointed compliance officer and collects additional taxes while claiming a tax cut to residents. Councilman Anthony D’Esposito called the tax cut “a flat out lie.”

“The councilman’s statement reveals that he either did not read or does not understand the tentative budget,” Gillen said in a statement.

Gillen’s staff disputed the actual spending of last year’s $422 million budget, which carried a 1.9 percent tax increase but did not include $12 million in payroll spending that the town expected to save through an early retirement initiative for eligible workers.

So far this year, town Comptroller Kevin Conroy said the early retirement initiative of 118 employees has saved $10.6 million through September 2018.

Gillen’s financial director Averil Smith said the previous budget used a misleading number to deflate expenses with anticipated retirements. She said Gillen did not want any numbers that could not be verified and did not include it in the proposed 2019 budget. A town audit showed estimated savings from 2017 were miscalculated by $12.9 million, town officials said.

The town is budgeting $169.5 million for payroll and $118 million in expenses, including legal fees, settlement payments to the Fashion Institute of Technology's tuition fees owed by Nassau County and $9 million in additional debt due to a 10-year garbage tax settlement with Nassau County.

The budget also absorbs $1.4 million in undbudgeted salary costs from 14 positions that were transfered or promoted at the end of last year during Santino's term. The town has reduced payroll by about 50 postions through attition or positions that were left vacant. 

The town is collecting a total of $275 million in taxes as part of its overall revenue of $443 million. The budget also calls on restoring $8.4 million in town reserves. 

Gillen is starting a townwide tour Monday to present the budget to residents in a series of community meetings. Meetings are planned in Elmont, the Five Towns, Rockville Centre, Levittown, Bellmore ad Roosevelt.

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.