The Town of Hempstead Town Board met Tuesday for its final meeting of 2025, approving a slate of resolutions that will shape town operations—and employee paychecks—for years to come. Here's what you need to know.
The Big Story: 5-Year Union Contract Approved
The Board approved a sweeping new collective bargaining agreement with CSEA Local 880 (Town of Hempstead employee's Labor Union) that locks in ~14% cumulative wage growth through 2030 and dramatically expands benefits for town employees.
Key highlights:
- Wage increases: 2% annually for 2026-2028, then 4% for 2029 and 2030
- Free health insurance: After 15 years of service (starting 2029), employees pay nothing
- Dental overhaul: Orthodontics coverage more than triples to $4,240
- New paid leave: 6 weeks pregnancy disability leave established
- Vacation boost: Up to 26 days for 15+ year employees; payout cap doubled to 100 days
The agreement also restructures part-time worker rules and eliminates the uniform allowance.
Read the full story: Town Approves Landmark 5-Year Union Contract →
New Retirement Benefit: 401(a) Plan
Alongside the union contract, the Board established a new tax-advantaged retirement option. The IRC Section 401(a) plan allows employees to defer accumulated leave payouts—sick time, vacation, comp time—into a retirement account instead of taking a taxable lump sum upon separation.
The plan will be administered through BENCOR and could save retiring employees thousands in taxes.
Read more: New Tax-Advantaged Retirement Option Coming →
Infrastructure: $2.26M Street Lighting Contract
Denis O'Regan Electric, Inc. of Glen Cove was awarded a $2,264,020 contract for 2026 street lighting maintenance, repairs, and electrical infrastructure upgrades throughout the Town.
The one-year contract, with an option to renew, was the sole bid received.
Read more: Town Awards $2.26M Street Lighting Contract →
Budget: $720,000 in Year-End Transfers
The Comptroller's office moved more than $720,000 across 17 departmental accounts to address year-end operational needs. The largest adjustments went to General Services ($135,000), Parks and Recreation ($121,504), and Highway operations ($112,653).
Read more: Year-End Budget Shuffle →
Development: Garden City Vet Office Expansion
The Board approved a site plan for 975 Stewart LLC to expand an existing building into a veterinary medical office on Stewart Avenue in Garden City.
Read more: Veterinary Office Expansion Approved →
What's Next
| Item | Effective Date |
|---|---|
| CSEA wage increase (2%) | January 1, 2026 |
| Uniform allowance ends | January 1, 2026 |
| New part-time worker rules | January 1, 2026 |
| Street lighting contract begins | TBD (Notice to Proceed) |
| 401(a) plan enrollment | TBD (administrative setup required) |
Also on the Agenda
- Association of Towns membership: $1,950 annual dues, paid to New York State approved for 2026
- Conference attendance: Deputy Supervisor Dorothy L. Goosby authorized to attend the Association of Towns Annual Meeting (Feb 14-17, 2026)
- Procurement policy: Existing policy reauthorized for 2026 without changes
- Fire department: Dennis Newman removed from Merrick Hook and Ladder Co., No. 1