Hempstead Town Passes Tax-Freeze Budget For 2021

HEMPSTEAD TOWN, NY — The Town of Hempstead Board of Trustees voted on a 2021 budget that holds the line on taxes for residents.

The 2021 spending plan, which was unanimously approved at board meeting Tuesday night, is a $453.5 million budget that decreased spending in some areas in order to keep taxes level. Hempstead Town Supervisor Donald X. Clavin touted the budget's $253.1 million tax levy, which is the same as the current spending plan.

“Under this budget, we will accomplish our mission to preserve town programsand services while demonstrating the highest regard for taxpayers,” Clavin said. “It is incumbent on government to lead by example at all times, but especially as families struggle during difficult economic periods like the current coronavirus pandemic, which was so abrupt and unexpected. This 2021 spending plan demonstrates fiscal responsibility that respects taxpayers as the town will freeze the total property tax burden borne by residents.”

The Town of Hempstead provides many services for its residents, Clavin said, and only accounts for a small fraction of their tax bill. The town gets about 8 cents of every tax dollar people pay, Clavin said, and only 2 cents for residents of incorporated villages.

Clavin said that the new budget cut expenditures by 2.5 percent, or $11.4 million, to offset annual increases in other costs.

In order to keep costs down, the town also enacted a retirement incentive program that Clavin said will save the township more than $6 million in salaries and benefits. The program led to a 2 percent reduction in the town's workforce for the 2021 fiscal year, which is a 37-person reduction. Clavin also cut the budget for his own office in half, reducing it by $1 million, on his first day in office in January.

The Town Board also refinanced some of its debt, saving the taxpayers about $750,000, Clavin said.

“Other governments are in fiscal free fall due to the impacts of the pandemic as well as a failure to budget conservatively and build adequate budgetary reserves as a bulwark against financial crises like this pandemic," said Clavin. "Our government has worked hard to ensure that there is no increase in the total taxes levied by the Town of Hempstead in 2021. Neighbors deserve that type of budgetary fidelity, and financial institutions respect our conservative financial practices.”