District's Long-Term Debt Falls
The Huntington School District's long-term debt continues to fall, a result of a pay-as-you-go philosophy for capital improvements and conservative budgeting. The overall debt is among the lowest of any district of comparable size on Long Island.
An analysis of the district's latest financial statements dated June 30, 2012 indicates the district has a relatively low level of long-term debt that continues to rapidly drop. Entering the current school year, Huntington owed $3,525,000 in principal and $926,200 of interest for a total debt as of July 1, 2012 of $4,451,200.
The district will retire another $1,179,113 of long-term debt during the 2012/13 school year, including $1,045,000 in principal and $134,113 of interest. Another $248,450 will be paid off in 2013/14, $247,469 in 2014/15, $251,281 in 2015/16 and $249,681 in 2016/17.
By July 1, 2017, the district's debt will have been dramatically paid down. The total debt will continue to plummet over the following nine years. Another $1,255,331 in debt will be retired from 2018 to 2022. The district will pay off $1,019,875 from 2023 to 2026, at which time Huntington will be completely free of its long-term debt.
"The Huntington School District has upheld a relatively secure financial position during fiscally uncertain times as a result of sound economic decisions, not the least of which is maintaining a particularly low level of debt," Superintendent James W. Polansky said.
While there has been regular turnover on the Huntington School Board over the past 30 years, trustees have displayed a remarkable similarity of philosophy when it comes to their aversion to debt, fiscal gimmicks or "too rosy" budget assumptions.
Trustees have shown an aversion to going to the community and asking for permission to increase the district's debt. Instead, it has used millions of dollars in already collected property taxes to finance renovation and reconstruction projects through a voter approved capital reserve fund.
The district also has $1,576,163 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 as a result 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 energy performance contract is 16 years and the debt will be completely eliminated in 2021.