A new contract with Oyster Bay Cove police has translated into big savings and flat taxes in Laurel Hollow's annual budget.

The village spending plan for the fiscal year beginning June 1 includes $1.25 million for police protection, 26 percent less than the estimated $1.68 million Laurel Hollow will have spent for Nassau County police services by the current fiscal year's end.

"The fact that we were able to get this contract with Oyster Bay Cove . . . is the primary reason we are able to have a balanced budget while not raising any taxes," Laurel Hollow Mayor Harry Anand said.

Village officials on Tuesday unanimously adopted a $3.21 million budget for 2012-13. The budget is down 8.95 percent from the current year.

Oyster Bay Cove police will replace Nassau police in Laurel Hollow on June 1 with no loss in coverage, officials said.

"The police expenses had been a very significant part of our budget, nearly 50 percent of the budget over the past few years," Anand said, "and it had continued to escalate."

There is no increase in the property tax levy in the budget, which remains at $2.49 million.

Laurel Hollow has stayed under the state's 2 percent property tax cap despite passing a local law in February to override the levy limit if necessary.

Anand said the local law was a precaution in light of the convoluted terms of the state cap, which he called "a political gimmick." The state exempts pension and health care spending as factors in calculating the levy limit, he pointed out.

The adopted budget does not include property tax rates, which are dependent on Nassau assessment data and are to be discussed at the May 8 trustees meeting.

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