Planned N. Hempstead tax hike tops 2% cap

Next year's proposed Town of North Hempstead budget would exceed the state's new 2 percent cap on tax increases, and town board members must vote Monday night to override the limit before they can approve the spending plan.

Town officials originally said the tax increase would be 1.9 percent, but after calculating costs to expand a town-operated garbage district, the levy increase is 2.3 percent, Supervisor Jon Kaiman said.

Town officials said the increase stems from the Great Neck garbage district adding 595 more residential and commercial properties this year. Residents' taxes will not go up by 2.3 percent overall but will vary by district, Kaiman said.

Under state law, town budgets must include special district spending when the town board acts as the district board. The aggregate must stay within the 2 percent cap. If it goes over, 60 percent of the board must authorize an override.

Board member Fred Pollack said the state law unwisely lumps special district spending in with overall town spending.

"That's just what we're stuck with," he said.

Earlier this year, the town board voted to expand the Great Neck garbage district to include new neighborhoods. Once bids for garbage pickup were received, the overall town budget exceeded the cap, Deputy Supervisor Chris Senior said. The need for an override was not discussed at the Nov. 10 public hearing on the budget.

"The Great Neck garbage district just threw us for a loop," Kaiman said.

The tax cap allows governments to exclude some charges such as pension costs and lawsuit judgments, but the exemptions do not cover expansions.

The state comptroller's office monitors governments that intend to override the cap. Local laws passed to exceed the cap must be filed with the Department of State, a spokeswoman at the comptroller's office said.

With Newsday staff