New Capital Reserve Fund Questions & Answers

Huntington School District voters will be being asked to authorize creation of a new Building Improvement Fund when they go to the polls on Tuesday, May 20 at Huntington High School from 6 a.m. to 9 p.m. The new fund would replace a similar one that is set to expire soon.

Use of successive Building Improvement Funds has allowed the Huntington School District to avoid the need for selling bonds and incurring debt service payments to update its facilities. The district will eliminate the last vestige of its long term debt at the end of June.

Huntington UFSD has one of the lowest levels of debt of any school system on Long Island. By avoiding bonding, taxes have been kept lower than they otherwise would have been.

As is the case for the current fund, existing budget monies would once again be used to capitalize the new fund. If in any given year the district spends less money than it had originally anticipated, these surplus monies could be transferred by the Huntington School Board into the new Building Improvement Fund.

Monies contained in the Building Improvement Fund can only be used for capital projects, such as school roofs, asbestos abatement, heating and ventilation projects, masonry work, windows, site work, facility improvements, etc. None of the monies can be used for general school district expenditures.

If the proposition is approved by residents, the district would be authorized to transfer surplus monies as may be available at the end of each fiscal year “for a probable term of 10 years in an ultimate amount of $15 million.”

Residents would still have to give permission through a public vote before the district actually begins any project. The school district would be able to apply for state aid on any capital project it completes.

Questions & Answers on the New Reserve Fund

What is a reserve fund? A reserve fund is like a savings account for the school district. It helps the district set aside money over time for important building repairs and improvements.

What project(s) will be completed with this money? The reserve will be used for future building improvements and repairs, such as fixing roofs, upgrading heating and cooling systems, improving safety features and updating school facilities to better serve students and staff.

What happens if we don’t create a new reserve? The school district may need to borrow money or ask for higher taxes when major repairs or improvements are needed.

Why $15 million? This amount ensures the district is prepared for major projects while following state regulations related to school reserve funds.

Why do we need another reserve when the 2022 reserve still exists? Each reserve fund is created for a specific purpose and has a set lifespan. If an existing capital reserve is nearing its limit or has designated funds for other projects, a new reserve ensures continued financial planning for upcoming capital needs.

Why do I have to vote on this? New York State law requires voter approval to create a capital reserve fund and to authorize future expenditures from it, ensuring transparency and community oversight.

How does this help me? This reserve fund helps protect taxpayers from sudden spikes in school taxes by allowing the district to save gradually for building repairs and improvements.

How much will this cost me? This reserve will not increase your taxes. The fund is built over time using existing unspent district funds rather than new taxes.

How will the reserve be funded? The reserve is funded by savings from the district’s annual budget, unspent money at the end of the year and other allowable sources (e.g., proceeds from the sale of assets) - not through new taxes.