Huntington School District has long utilized a capital reserve fund to cover costs associated with reconstruction projects.

Capital Reserve Monies Fund Needed Projects

Huntington School District has long utilized a capital reserve fund to cover costs associated with reconstruction projects.

November 29, 2018

The Huntington School District continues to be well-positioned to pursue possible renovation and repair projects with nearly $4 million held in three separate capital reserve fund accounts.

Maintaining a well-funded capital reserve allows the district to avoid borrowing and incurring interest costs to upgrade its facilities. The district’s long term bonded debt of less than $1.9 million is among the lowest on Long Island.

District residents authorized the expenditure of up to $7.151 in capital reserve monies last May to fund reconstruction and repair projects across the district in coming years. Together with earlier approved projects, the district has more than $10 million of work in the pipeline.

The district currently maintains three Building Improvement Funds, which were approved by residents in May 2013, May 2017 and May 2018. Residents authorized the following funding levels:

  • The 2013 fund can be capitalized up to $10 million at the rate of up to $2 million annually through June 30, 2021.
  • The 2017 fund can be capitalized up to $12.5 million over a maximum period of eight years.
  • The 2018 fund can be capitalized up to $1.5 million over a maximum period of five years.

Monies the district is able to save during the course of a year can be transferred into the Building Improvement Fund(s) and used to keep Huntington’s eight buildings in good shape. These monies can only be used for capital projects, including new school roofs, windows, doors, boilers, facility improvements, etc. Completed projects are eligible for state aid. District residents must approve any expenditure of funds.

The individual Building Improved Fund balances are currently:

  • 2013: $582,325
  • 2017: $2,681,210
  • 2018: $565,824

The total balance of all three funds stands at $3,829,359. The establishment and prudent ongoing use of a capital reserve fund has allowed the district to avoid borrowing and reduce long-term debt to $1,858,700 million as of last July 1.

District officials have identified many possible new renovation and repair projects in every district building and have developed a five year plan to address these needs. Any decision to bring a Building Improvement Fund proposition to residents in May 2019 will be made by the Huntington School Board during a late winter or early spring public meeting.

“We have been able to accomplish quite a bit of the work outlined in our five-year rolling capital plan, in a priority-based and incremental manner, through the responsible establishment, funding and use of our capital reserve funds,” Huntington Superintendent James W. Polansky said. “We plan to continue funding building improvement projects in this manner for the foreseeable future, which will further reduce the district’s already remarkably low debt level.”