Trustees Set Tax Levy Below Earlier Projections
When Huntington School District residents went to the polls last May they were faced with a projected tax rate increase of 2.89 percent. This week, more than four months later, a variety of mostly positive financial factors allowed school trustees to significantly reduce that estimated increase to just 1.87 percent.
School Board members voted unanimously to set the tax rate at $194.02 per $100 of assessed valuation. On a percentage basis, the reduction in the final rate is significantly larger than at any time in recent memory.
“As of June 30, 2009, the general fund is in excellent financial condition,” said David H. Grackin, assistant superintendent for finance and management services. The external auditing firm of Coughlin, Foundotos, Cullen and Danowski, LLP has been conducting an annual review of the district’s financial books.
Mr. Grackin said as a result of the district’s fine financial condition it will be able to:
• Continue to have an unappropriated fund balance of four percent, which helps to protect taxpayers from unexpected tax increases.
• Transfer $2 million to the capital reserve fund and $1 million to the worker’s compensation reserve fund. Each of the items also serves to protect taxpayer’s interests. For example, by transferring monies to the capital reserve fund, the district can pursue needed renovation and repair projects (if approved by residents) without having to borrow and incur interest costs.
“During the budget process we predicted the estimated tax rate based upon using $1.35 million in unappropriated fund balance,” Mr. Grackin said. “Because of our excellent financial condition, we are able to appropriate $1.405 million.” This also reduced the need for even higher taxes.
Another positive development came when the district learned that its total assessed property value was $46,128,234, substantially above the conservative figure of $45,700,000 that was used in the development of the current year’s budget last spring.
While the financial news was generally bright, one negative item surfaced in the form of the MTA’s new mobility tax on payrolls. Mr. Grackin said this new state tax will result in an additional expense of $190,000 this year, which wasn’t budgeted for. However, the state has promised school districts that this new assessment will be completely offset by a commensurate amount of state aid.
“Once again, conservative budgeting by the Huntington School Board, combined with ongoing tight fiscal management, has well-served the interests of district taxpayers,” Superintendent John J. Finello said.
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