District's Long-Term Debt
Tumbles Down
The Huntington School District's long-term debt is spiraling downward, highlighting its reputation for being one of the most frugal school systems on Long Island.
A review of the district's latest financial statements dated June 30, 2010 shows a relatively low level of long-term debt that is rapidly being paid off. Entering the current school year, Huntington owes $5,465,000 in principal and $1,352,688 of interest for a total debt as of July 1, 2010 of $6,817,688.
The district will retire $1,188,475 of long-term debt this school year, including $950,000 in principal and $238,475 of interest. Another $1,178,013 will be paid off in 2011/12, $1,179,113 in 2012/13, $248,450 in 2013/14 and $247,469 in 2014/15.
By July 1, 2015, the district's debt will have been substantially paid off. The total debt will continue to plummet over the next 11 years. Another $1,253,137 in debt will be erased from 2016 to 2019. The district will pay off $1,267, 619 from 2021 to 2024, leaving just $255,412 to be retired in 2026, at which time Huntington will be entirely free of its long-term debt.
Through the years, the faces on the Huntington School Board have periodically changed, but the general frugalness of trustees has remained the same. Trustees have been very hesitant to ask taxpayers to approve increasing the district's indebtedness. Huntington has instead preferred to follow a pay-as-you-go philosophy to expand or renovate its buildings, utilizing existing funds in the district's capital reserve account to complete projects.
The district also has $1,855,894 in 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 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.
"Our district has been careful about taking on debt and the associated interest expenses," Superintendent John J. Finello said. "In doing so, taxes have been kept lower than they would have otherwise been. We have a very conservative financial philosophy in Huntington and it has served our residents well."