Supervisor May Newburger presented her budget for the Town of North Hempstead for fiscal year 2001 to the town board on Sept. 29.

The budget reduces the total tax levy in the four major operating funds by 1.4 percent, holds the line for the fourth consecutive year in general fund taxes and puts behind the town the issues of deficits and debts.

For the second consecutive year, the four major funds-general fund, part-town fund, highway fund and Solid Waste Management Authority (SWMA) -have surpluses. This is the first time the four funds have had surpluses for two years in a row since the creation of the Solid Waste Management Authority in 1983.

The cumulative surplus across the four funds has increased from $4,068,488 at the end of Fiscal Year 1998 to $4,491,179 at the end of Fiscal Year 1999, a 10.4 percent increase. This cumulative surplus represents 6.62 percent of the town's operating budget for Fiscal Year 2000, which is above the threshold of 5 percent established by Standard and Poors. The town secured a long-term bond rating increase from Moody's Investors Service (A3 to an A2) and a short-term note rating of MIG 1, the highest quality rating bestowed by Moody's as indicative of a healthy municipality. Moody's attributes continuing improvements in North Hempstead's finances to Úquot;more conservative budget forecasts, the Town's ongoing efforts to streamline operations, and recent land sale revenue that has been used to redeem outstanding obligations and reimburse the general fund for prior debt payments on behalf of SWMA.Úquot;

In September, the town board adopted the supervisor's Debt Management Plan which establishes Úquot;not-to-exceedÚquot; targets for debt issuance between Fiscal Year 2001 and Fiscal Year 2010 which will reduce debt payments in the general fund by 15 percent, reduce debt service payments in the highway fund by 25 percent and reduce overall town debt by $107 million.

Highway fund taxes will go up by 3.2 percent in the budget, essentially the cost of living. The increase is attributable to reductions in assessed valuations of commercial properties in North Hempstead, which in turn is attributable to the certiorari challenges to the Nassau County assessment system.

At a meeting with local newspaper editors, Supervisor Newburger's director of operations, Arthur Gianelli, explained certain expenditures that call for increases in the 2001 budget. They include an estimated rise of 92 percent in heating fuel costs, an estimated rise in health insurance costs, as well as several items that can only be classified under Úquot;miscellaneous.Úquot; For example, North Hempstead was not aware that it was required to charge sales tax on the rental of golf carts at the town's Harbor Links and therefore incurred this liability. The town has a tax obligation to the Port Washington Water Pollution Control District for the area of the former Morewood property on which senior housing is to be built. Once the housing is built, the obligation will be shifted to the developer.

The Newburger administration has taken certain positions which it considers conservative in estimating future revenues. For example, the budget holds the mortgage tax estimate constant although for the past two years, mortgage tax payments have exceeded the budgeted amount. Mortgage rates have declined but the town still expects to exceed its budgeted estimate. The sales tax estimate is 1.5 percent more that what was budgeted in 2000 but less than what North Hempstead expects to receive in sales tax revenue. The town expects to exceed its Parks Department revenue estimates because of certain changes that have been made, including an increase in park fees. Due to the exceedingly rainy summer, the golf course did not do as well in 2000 as it did in 1999 and the fiscal year 2001 budget has reduced its estimated profit.

Because debt for environmental projects has peaked, the town realized reductions in raw long-term debt service expenses in the fiscal year 2001 budget. Sixteen town employees took the New York State early retirement incentive, resulting in total salary reduction to the town. The town raised its fine on parking tickets from $15 to $25 in fiscal year 2000 and will raise the minimum fine again in 2001, this time to $30. With an additional enforcement agent issuing tickets, the town expects to increase revenues for $405,000 to $650,000.

L-5 landfill capping and closure begins this month. Town employees will do the basic grading work in order to save substantial sums of money.

The town will again undertake a road-resurfacing plan for North Hempstead roads. For the first time, in-house forces will do more difficult reconstruction work.

The budget appropriates funds to pay the annual installments for a performance contract for the installation and maintenance of an environmentally cutting-edge geothermal HVAC system for Town Hall. It expects to receive a LIPA rebate of $110,000 for this energy-saving project.

The Parks Department plans to run a series of summer camps at Senator Michael J. Tully Park which should net a profit to the town.

The town is obligated to adopt its budget by Nov. 20.