District's Long-Term Debt Glides Down
The Huntington School District's long-term debt continues its downward glide, highlighting its reputation for being one of the most tight-fisted school systems on Long Island.
A review of the district's latest financial statements dated June 30, 2011 shows a relatively low level of long-term debt that is rapidly being paid off. Entering the current school year, Huntington owed $4,515,000 in principal and $1,114,213 of interest for a total debt as of July 1, 2011 of $5,629,213.
The district will retire $1,178,013 of long-term debt this school year, including $990,000 in principal and $188,013 of interest. Another $1,179,113 will be paid off in 2012/13, $248,450 in 2013/14, $247,469 in 2014/15 and $251,281 in 2015/16.
By July 1, 2016, the district's debt will have been substantially paid off. The total debt will continue to plummet over the next 10 years. Another $1,252,456 in debt will be erased from 2017 to 2021. The district will pay off $1,272, 431 from 2022 to 2026, at which time Huntington will be entirely free of its long-term debt.
Through the years, the membership of the Huntington School Board has periodically changed, but the general fiscal conservatism of the group has remained the same. Trustees have been reluctant to ask taxpayers to approve increasing the district's indebtedness. Instead Huntington has preferred to follow a pay-as-you-go philosophy to renovate and improve its facilities, utilizing existing funds in the district's capital reserve account to complete projects.
The district also has $1,718,822 of "installment" debt related to an energy performance contract project that funded the installation of energy efficient windows and doors, lighting, heating and ventilation equipment, etc.
The annual principal repayment and interest costs of the EPC are paid for through the savings generated by the use of the more efficient equipment. The district is currently paying that debt down at the rate of $212,718 per year. The length of the contract is 16 years and the debt will be eliminated in 2021.
"The district has traditionally been hesitant to assume a large debt and the interest expenses that accompany it," Superintendent James W. Polansky said. "This fiscal practice has allowed the property tax rate to be kept lower than it otherwise would have with massive borrowing. This philosophy has served our residents very well through the years."