For the eighth year out of the last nine years, the Town of Hempstead has kept the general town taxes the same. Town Supervisor Richard Guardino recently announced that his proposed $272.7 million budget for the year 2000 would once again freeze all town tax levies.

According to Guardino there are several factors in how the town has managed to keep the tax levy the same each year, as opposed to other areas on Long Island which have had to raise various taxes due to budget deficits. The Town of Hempstead will close out 1999 with a budget surplus and is expecting to see the same phenomenon occur in the year 2000.

"We do a line by line review of all departmental expenditures," explained Guardino. "We worked very hard to cut any waste that we have here in government." Guardino has reduced expenditures and increased revenue in the last several budgets in an effort to hold the line on taxes.

One of the most prominent examples of a cost-cutting measure that the supervisor has figured into the upcoming budget is taking over the operation of a transfer station in Merrick, which will save the town's sanitation department $5 million, a savings which goes back into the town's finances. Another example of a cost-cutting measure in the town's sanitation department is a plan to recycle concrete, which will save the town another $80,000 in disposal costs. The highway department will be doing their share of cutting costs by recycling the sand used on the roadways during snow, rather than having it trucked and landfilled.

By changing all the lights in the township, from mercury to a vapor system, the town will be saving $400,000 a year in utility costs as well as providing residents with brighter, safer lights. Since 1997 there are 73 fewer employees of the town, at a savings of $4.7 million since 1997. Smaller plans, such as the consolidation of copying contracts which will save approximately $8,000, are also in effect.

Privatization in Parks and Recreation, such as privatizing the golf course at Lido will not only help the town cut costs but is expected to bring in $900,000 over 10 years. Donations from the private sector has brought in excess of $40,000 to the Parks and Recreation Department, which helps support some of the programs and activities that the department sponsors. Guardino noted that the town also has a very aggressive program of seeking surplus equipment from the federal government and through this program has been able to acquire $2 million worth of equipment at a cost of $80,000.

"We're trying to become more and more efficient every year," said Guardino.

This efficiency, sound budgeting and cost-cutting strategy has helped the Town of Hempstead receive the highest rating of any town or county on Long Island, from both Moody's Investors Services and Fitch IBCA (an international ratings firm). The "AA" rating that the town has received from these two firms puts the Town of Hempstead in the top 1 percent of the towns in New York State.

The high rating by Moody's and Fitch helps keep the taxes in check in the future as well, because, with this rating, the town is offered a more competitive interest rate on short-term borrowing. An example of this, according to Guardino, is when they went out to borrow with some short term notes a few weeks ago and the interest rate was 3 percent. "That's extraordinary," noted Guardino.

According to the supervisor, the town taxes are the smallest portion of a homeowner's tax bill, "and it becomes less every year. In the next year the town taxes are actually a little over 10 percent of your property tax bill and it's gone from where it was around 14 or 15 percent several years ago to now, where it's 10 percent or so, while other taxing jurisdictions have increased taxes, so, by ours remaining the same, we're becoming a smaller and smaller part of the property tax."

Guardino believes that this sound fiscal history over the last several years has helped residents have faith in the municipality. He stated, "I think there's been a lot of negative publicity about some of the things happening in the county, and although I'm optimistic about the county legislature eventually straightening themselves out, you can look to the Town of Hempstead as being a municipality that's in great financial shape and I think people should feel confident about that. I know as I go around, people are concerned and seemed very relieved when I'm able to say to them that the Town of Hempstead's fiscal condition is very strong and very stable."

Guardino concluded, "When you use other people's money, you have an obligation to spend it carefully. I take that responsibility very seriously. I believe my budget will give the residents of this town the most for their dollar through an improved infrastructure, excellent services, and a broad range of programs."