North Hempstead presents 2026 tentative budget that freezes major funds while drawing on reserves

The Town of North Hempstead’s administration presented its 2026 tentative budget at a special Oct. 16 town board work session, proposing to freeze tax rates in the town’s major funds while absorbing modest expense increases and relying in part on fund balance to close the gap. Steve Pollock, who led the presentation for the supervisor’s office, said the general fund expenses rise about $1.4 million (roughly 1.55%) from 2025 and the proposal remains under New York State’s tax cap.

Why it matters: The budget sets the town’s spending priorities for the coming year and determines whether the board will need to adopt tax increases or tap reserves. Pollock warned that health insurance, retirement and utility costs are the largest single drivers of the proposed increases and pointed to litigation-related payouts as an additional pressure on reserves.

Key figures and drivers - Pollock listed principal increases in the general fund: health insurance (+$652,000), retirement (+$358,000), water (+$335,000) and tort/liability litigation (+$318,000). He also noted a community college chargeback increase (~$214,000) and that long-term debt service is down while short-term debt climbed mainly because of a Tully Park parking-lot project that is partly FEMA-reimbursable. - The tentative budget assumes no tax increase in the town’s major funds (general and TOV). Pollock said the document is organized to show the general fund, the town-outside-villages (TOV) fund, town-operated and commissioner-operated special districts, then schedules for long‑term debt and tax exemptions.

HarborLinks, water costs and a reclamation grant Town officials discussed the HarborLinks Golf Group concession extensively. Pollock said year‑2 contractual revenue from HarborLinks is budgeted as an $850,000 base payment plus a $100,000 contractual contribution for water expenses (totaling $950,000 under that line). He added the town is responsible for any water costs above that $100,000 contribution in a dry year; 2025 year‑to‑date water expenses at the course stood at about $385,000, making the town’s outlay higher for that season. Staff said the supervisor secured a multi‑year grant from Senator Chuck Schumer to support a water‑reclamation project intended to reduce future water costs.

Postage, printing and communications The administration put postage and printing budgets back near prior-year levels after an attempted cut that staff said compromised resident outreach. Officials told the board the town resumed a four‑issue mailed newsletter and continues to send required first‑class mail (for example, tax bills and reminders), which increases postage and printing costs. One councilmember said she frequently pays for small printings personally and proposed an amendment to allocate modest, district‑level printing/postage funds for each councilmember; staff noted central printing and mail services already support member mailings, though usage varies by individual.

Bus‑camera (school bus stop‑arm) enforcement revenue and accounting Board members pressed for details about revenue from the bus‑camera program. Pollock said the TOV projection for 2026 is about $3.197 million (staff noted 2025 figures were incomplete because the program rolled out during the year and revenue posting lags adjudication). Staff and the town’s enforcement lead described the adjudication process (handled through Nassau County’s adjudication bureau) and said the vendor (Bus Patrol) remits the town’s share under the contract; revenue sharing is governed by the vendor agreement and staff said they will confirm detailed accounting and any payments to villages.

Fund balance and unexpected litigation costs Pollock showed the town’s audited 2024 general‑fund balance at roughly $38.35 million and projected a starting 2026 fund balance of about $34.22 million after anticipated uses; assuming full use of the $10 million appropriation included in the 2026 tentative budget, the year‑end 2026 general‑fund balance would be roughly $24 million, staff warned these are preliminary estimates. Board members also discussed several multi‑year court settlements that predate the current administration; staff said roughly $3 million of unexpected settlements required reserve use and that litigation has increased pressure on the budget.

What’s next The town attorney and administration outlined the budget amendment process: any board amendment must identify the exact line items to change and the offset, be submitted in writing, and be posted at least 24 hours before the meeting at which the board will vote. The public hearing on the tentative budget was scheduled for Oct. 28 at 7 p.m. At the end of the session a motion to adjourn was offered and approved by a recorded voice vote.

Quotes - "The proposed 2026 tentative budget freezes taxes in the town's major funds," Steve Pollock said during his overview. - On the HarborLinks water arrangement, Pollock said the town’s "intent is to eventually eliminate water expense" through a water‑reclamation project supported by federal grant funds.

Ending Town staff committed to follow up with line‑by‑line clarifications requested during the session (for example, the community‑centers $5,000 line, the detailed breakdown for communications and postage, and accounting details for bus‑camera revenue). The board will receive the required written guidance on amendment format and timing before the Oct. 28 public hearing.