Most buyers compare houses by price and property tax. In Glen Head that leaves out one more tax. Liberty Utilities supplies the water, and it is a private, investor-owned company. It pays property and income taxes on its pipes, wells and plants, and those taxes are built into the rates its customers pay. Two homes with similar assessments can therefore cost different amounts to own every year, depending on who supplies the water.
That gap is about to matter more. Liberty has asked the New York State Public Service Commission for an increase that would add about $27 a month to an average Sea Cliff-district bill. Meanwhile, a public authority formed to buy the system is still negotiating with the company.
The service map does not follow the town map
Liberty's current rates page says its North Shore district, which it also calls the Sea Cliff district, serves customers in:
- Sea Cliff
- Glen Head
- Glenwood Landing
- Portions of Old Brookville
- Portions of Roslyn Harbor
- Portions of Glen Cove
The company's water-quality report lists the same six communities and marks every one except Sea Cliff as only partly served. Liberty took over the system from New York American Water, according to the Herald.
The state's 2021 municipalization feasibility report says public systems run by municipalities, districts and authorities serve the rest of Nassau County. The same report says water service territories "do not necessarily align with tax jurisdictions," so two neighbors in the same town can pay for water under very different cost structures.
For a buyer comparing a Glen Head colonial with one a few miles away in a public-water area, the listing shows nothing about this. The tax bill on file covers only the tax the county, town, school district and other jurisdictions charge on the house itself. The tax collected through the water bill never shows up there.
What the water bill pays besides water
The feasibility report was written for the state when the system still belonged to New York American Water. Its numbers are from that time and are not a breakdown of today's bills. They still explain why the bills look the way they do.
The report found that property and income taxes together made up 38 to 60 percent of the company's water bills in Nassau. For the Sea Cliff territory specifically, it found that taxes cost more than running the company and delivering the water combined, including labor, administration, rents and investment.
The report traces this to a Nassau rule. Nassau is the only county in New York State outside New York City that sorts property into four tax classes. Utility "special franchise" property falls in Class 3, which usually carries higher rates. Public water systems are exempt from these taxes, so their customers pay none of it through their water bills.
The report put a dollar figure on the Town of Oyster Bay, which includes Glen Head and Glenwood Landing. At the time, the town collected about $150 more per year from each private-water customer than from each customer on municipal water. The report described it this way:
"Collecting taxes through a water bill is a hidden tax that most customers are unaware they are paying."
Glen Head resident Agatha Nadel, who has pushed for public water for nearly 13 years, told the Herald the same thing in fewer words: "We're paying more taxes because we're paying taxes through our water bills that those with public water don't pay."
The Herald also notes that public providers can get state and federal grants for equipment and infrastructure. A private company pays for those upgrades through its rates.
The rate case that would raise the bill
So taxes are built into the price of water here, and the case now before the PSC would raise that price. Liberty filed it on May 29, 2026 as PSC Case 26-W-0358. Under the company's original proposal, the average residential bill in the Sea Cliff district would go up $26.89 a month, or 29.71 percent. That estimate assumes 8,000 gallons a month, according to the PSC's October 21, 2026 notice. Working backward from those two figures, today's average bill at that usage is about $90 a month, so the increase would bring it to roughly $117.
Here is how the Sea Cliff district compares with Liberty's other residential districts in the same notice:
| Liberty district (PSC notice, Oct. 21, 2026) | Proposed avg. monthly increase | Percent |
|---|---|---|
| Sea Cliff (Service Area 2) | $26.89 | 29.71% |
| Merrick (Service Area 2) | $21.20 | 36.99% |
| Service Area 1, outside New Vernon | $27.77 | 28.3% |
| New Vernon (Service Area 1) | $35.47 | 59.35% |
The notice says the main reasons for the request are capital spending on aging infrastructure, more capacity, and treatment to meet federal drinking-water standards for PFAS and PFOA. It also lists resiliency work, lead service line replacement, information technology upgrades, depreciation and taxes. "Our proposed investments represent what is necessary to maintain and improve our system," Deborah Franco, president of Liberty's New York water business, told the Herald.
Taxes are on that list of drivers, so part of the requested increase is tied to tax costs. The case is still pending, and the PSC's docket shows the rate change suspended further. The PSC can approve the request, reject it, or change it in whole or in part.
For anyone who wants to comment, the notice sets this calendar:
- Wednesday, November 18: in-person hearings at noon at the Merrick Public Library and at 5 p.m. at the Lynbrook Library.
- Thursday, November 19: in-person hearings in Ellenville and Brewster.
- Friday, November 27: deadline to register to speak at the virtual hearings.
- Wednesday, December 2: virtual hearings at 1 p.m. and 5 p.m.
- Friday, December 11: deadline for written comments.
None of the in-person hearings is on the North Shore. For Glen Head and Sea Cliff customers, the December 2 virtual sessions are the closest option.
The way out is still in negotiation
The longer-term fix is the Water Authority of North Shore, a public body set up to buy Liberty's local system. Its six directors are appointed by the City of Glen Cove, the Village of Roslyn Harbor, the Village of Old Brookville, the Village of Sea Cliff, and the Town of Oyster Bay, which names one director for Glen Head and one for Glenwood Landing. Those are the same communities on Liberty's service list.
In its February 2026 progress report, the authority said it was at step five, "Negotiation," of the PSC's eight-step process and did not yet run a water system. It had hired bond counsel and expected to choose a financial adviser. The board's September 28, 2026 minutes show the next move. The authority answered Liberty's offer of non-binding mediation, sent a copy to the PSC, and was waiting for Liberty's reply. The board meets at the Gold Coast Public Library on Glen Head Road.
The last purchase figure reported in public is old. In August 2025, Newsday reported that the authority had offered $17.2 million for North Shore assets serving about 4,500 customers. No newer valuation or financing package has been made public, and no one has set a takeover date. Next month marks five years since Gov. Kathy Hochul signed the law creating the authority, and Nadel told the Herald she believes the longer the transition takes, the more it could cost residents.
Together, these two tracks set the water cost for a Glen Head home over the next few years. A rate increase would raise it in the near term. A public takeover, if it closes, would change how the system is taxed. Both are still undecided.
Adding the water bill to a home comparison
The practical step is simple. When comparing homes on the North Shore, look at the water bill alongside the tax bill. Ask the sellers for a year of recent water bills. They show what the household actually paid at its own usage, which can differ from the 8,000-gallon average the PSC uses. Ask the provider directly whether the address is in Liberty's territory, since the company describes several of these communities as only partly served.
For sellers in Glen Head, Glenwood Landing and Sea Cliff, the same bills are worth having ready. A buyer comparing your home with one on public water will want them, and giving a clear answer up front is better than a surprise at the attorney review stage.
This post is general information, not legal, tax or financial advice. Please confirm the details of your own situation with your attorney, accountant or the utility.
FAQ
Does the rate increase take effect automatically? No. Case 26-W-0358 is pending, and the PSC can approve, reject or change Liberty's request.
Where can I read the filing? Liberty's testimony and exhibits are on the PSC's site. Open dps.ny.gov, choose File Search and enter 26-W-0358.
Is all of Glen Head on Liberty water? Liberty lists Glen Head and Glenwood Landing as partly served, so confirm service for each address.
At Team Knoell, we include the water bill when we compare North Shore homes, because in Glen Head it carries part of the tax. If you're thinking about selling, start with our instant home valuation, and we'll help you put together the full carrying-cost picture buyers will ask about.
