Capital Reserve Fund Keeps District Debt Low

Huntington UFSD’s use of a capital reserve fund to pay for renovation and reconstruction projects rather than bonding the work has resulted in the district being nearly debt-free.

The district’s entire long-term debt will be retired by June 30, 2026. When the 2023/24 school year rolls around on July 1, Huntington UFSD will owe just $650,000 in total principal, a fraction of the indebtedness of some districts across Long Island and New York State.

On Tuesday, May 16, district residents will be asked to approve another set of capital reserve fund projects worth an estimated $5.935 million. Approval of the proposition will not result in any increase in taxes since the monies already exist in an account to cover costs with renovation and reconstruction work.

District residents can vote on the proposed school budget for 2023/24 and the capital reserve fund proposition and elect two trustees to serve on the Huntington Board of Education on Tuesday, May 16 from 6 a.m. to 9 p.m. at Huntington High School.

The monies in the capital reserve fund represent dollars already provided to the district by taxpayers that weren’t needed to pay for regular school operations because of conservative fiscal management and economizing. The source of the funding is the annual transfer of surplus monies from the district’s general fund.

Residents have continuously authorized creation of capital reserve funds and approved projects funded through such an account. Huntington UFSD’s use of capital reserve funds has allowed the district to avoid borrowing large sums of money, incurring interest costs and accumulating debt. There will no tax rate impact if the funds are released. The district will also be eligible to be reimbursed by the state for approximately 40 percent of final costs.

The projects that will be on the May 16 ballot include:

Huntington High School

• Lighting on new turf field: $985,000

J. Taylor Finley Middle School

• Reconstruction of two science rooms and a science prep room: $800,000

Jack Abrams STEM Magnet School

• Phase II of roof replacement: $1,200,000

• Pressure boost system: $200,000

Flower Hill Primary School

• Installation of two new boilers: $800,000

Southdown Primary School

• Installation of two new boilers: $800,000

Washington Primary School

• Update electrical service and switchgear: $350,000

• Installation rooftop solar energy system and transformer: $450,000

District total: $5.935 million

Last year, district residents approved the following projects to be funded via capital reserve monies:

Huntington High School

• Construct new multi-sport turf athletic field: $2.725 million

• Partially replace the roof: $1 million

J. Taylor Finley Middle School

• Parking lot renovations; floor tile replacement in four offices and the common area: $375,000

Jack Abrams STEM Magnet School

• Partially replace the roof: $1 million

Flower Hill Primary School

• Upgrade electric service and switchgear: $350,000

• Installation of new gas/carbon monoxide detector: $30,000

Jefferson Primary School

• Upgrade electric service and switchgear: $300,000

Southdown Primary School

• Installation of new gas/carbon monoxide detector: $30,000

Washington Primary School

• Installation of two new boilers: $800,000

• Installation of new gas/carbon monoxide detector: $30,000

District total: $6,640,000

Should the proposition pass on Tuesday, May 16, the district’s architectural and engineering firm of BBS will formally design each of the projects and submit the plans to the State Education Department for approval. Once SED approval is received, the district will seek bids for the work. District officials are hopeful the bids will come in below estimates, lowering the cost of the projects.