Budget » 2022-2023 Budget Overview

2022-2023 Budget Overview

2022-2023 Budget Information

Overview

At the Budget Vote and Board of Education Trustees Election on Tuesday, May 17, 2022, the residents of Port Washington Union Free School District will have the opportunity to vote on a proposition to establish a capital reserve fund for a facilities improvement program.

Reserve funds are separate accounts set up to finance various District expenses, and can been described as a savings account for a specific purpose. They enable a school district to put away money over time in order to finance expenses later, without having to borrow money. This eliminates the borrowing expense (fees and interest) that compounds on top of the money required to complete a project, making the total cost of the project much more expensive.

The creation of this reserve fund would allow for any additional unanticipated revenue received and unspent budget dollars remaining at the end of a fiscal year to have the option of being set aside for this purpose. Establishment of reserve funds gives the District an avenue to responsibly save money for projects that are anticipated to be required in the future.

The District is proposing the creation of the following capital reserve fund:

Facilities Improvement Program I - to finance the cost of district-wide replacements, renovations, upgrades, reconstruction, additions, and remediation of: electrical service, HVAC units, air handling, unit ventilators, furnishings and equipment incidental to said projects.

  • The maximum probable term for this reserve fund will be 10 years, meaning it will expire on June 30, 2032.
  • The ultimate amount of money that may be set aside into this reserve fund shall be $15 million.

Quick Facts

  • Capital reserve funds are available to cover, in whole or in part, the cost of any object or purpose for which a school district may issue bonds pursuant to the Local Finance Law. 
  • Voter approval is required to establish such funds.
  • Funds may be expended only with voter approval and only for the specific purpose for which the fund was established.
  • Funds may be transferred with voter approval to other funds established pursuant to Section 3651 of the Education Law.
  • The fund may be liquidated if voters determine the original purpose for which the fund was established is no longer needed.

Benefits of Reserve Fund

  • Save for future needs
  • Maintain a stable operating budget
  • Maintain a stable tax levy
  • Boost district’s overall fiscal strength
  • Supplement the limitations of fund balance

Reserves Port Washington Currently Utilizes

  • Retirement Contribution Reserve Fund
  • Employee Benefits Accrued Liability Reserve (EBALR)
  • Workers Compensation Reserve Fund
  • Unemployment Insurance Payment Reserve Fund

Proposition No. 2 – Proposition to Establish a Capital Reserve Fund to be known as the “Facilities Improvement Program I – Port Washington UFSD”  

SHALL the Board of Education of the Port Washington Union Free School District, pursuant to Education Law section 3651, be authorized to establish a Capital Reserve Fund known as the “Facilities Improvement Program I – Port Washington UFSD” for the purpose of district-wide replacements, renovations, upgrades, reconstruction, additions, and remediation of: electrical service, HVAC units, air handling, unit ventilators, furnishings and equipment incidental to said projects.  The maximum amount of the aforesaid Capital Reserve Fund shall be $15,000,000, plus investment income.  The probable term is to be 10 years; the funds are to be transferred from surplus monies, if any, remaining in the general fund and/or from existing reserves as allowed by General Municipal and Education Law including a sum not to exceed $5,000,000 from the 2021-2022 budget and thereafter not more than $5,000,000 for each remaining year of the probable term until the maximum amount of $15,000,000 is reached.  Upon the establishment and funding of said reserve, the Superintendent of Schools or his/her designee shall be directed to deposit monies of this reserve fund in a separate bank account to be known as the “Facilities Improvement Program I – Port Washington UFSD.”  Upon the establishment and funding of said reserve, the Superintendent of Schools or his/her designee shall be authorized to invest, from time to time, the monies of this fund pursuant to section 1723-a of the Education Law.

    How does this help me, a taxpayer?
    By setting aside funds over time in a Capital Reserve, the District is able to save taxpayers a significant amount of money by avoiding issuing fees and interest expenses which are incurred when districts go out for large-scale borrowing.
     
    Additionally, the establishment of a Capital Reserve enables the District to plan long-term for its facilities needs and ensures our students are provided with safe, updated, and constantly improved facilities.

    How is this different from borrowing money?
    When school districts have to borrow money to fund capital projects, they do so with long term debt, called a “bond.” PW UFSD is looking to pay for necessary capital projects using funds which are already available rather than having to borrow large sums of money.
     
    By using available money, the District will not incur any of the exorbitant expenses related to taking out a bond, including issuing fees and interest expenses. As a result, these available funds – set aside over time in a Capital Reserve – will result in the capital projects saving residents a significant amount of money to accomplish the same end result.

    How much will this cost me?
    There is no additional expense to taxpayers.
     
    The District already maintains multiple Reserve Funds. These funds are used to pay for very specific expenses, all as set forth in law. So, for example, the Workers' Compensation Reserve Fund can only be used to pay for Workers' Compensation expenses within our operating budget. We routinely seek to replenish the balance in the Workers' Compensation Reserve Fund, for example, by transferring any surplus (extra unspent) funds at the end of each fiscal year into this fund. This is done as a matter of typical business routine after receiving Board approval, but not through a public vote.
     
    However, for Capital Reserve Funds specifically, the law requires school districts to have a public vote on the establishment of and funding level for such reserves… even though the way in which this reserve will be funded is consistent with how other District reserves are funded now and have always been.
     
    The way the District is choosing to fund this Capital Reserve is through surplus (extra unspent) funds at the end of any fiscal year, just like we do now to build the balances in other Reserve Funds we have. It is for that reason there is no additional expense to taxpayers.

    Why do I have to vote on this now?
    The establishment of a Capital Reserve Fund requires a public vote. Instead of incurring the costs to hold a separate public vote for this proposition, districts most often choose to include this proposition as part of the annual May Budget Vote and Board of Education Trustee Election.
     
    This year’s vote, occurring state-wide on Tuesday, May 17, 2022, will therefore also include a request for residents to vote on allowing the establishment of the Facilities Improvement Program I Reserve Fund.

    Why establish a capital reserve now?
    Over the past decade or so we have been fortunate to fund capital projects right out of our annual operating budget. As many of the anticipated capital projects would require budgets far larger than can be supported in the capital projects line of the annual budget, we are looking at additional ways to stay ahead of our large-scale facility needs while maintaining our focus on fiscal responsibility. Saving for various capital projects over the course of time using surplus funds which already exist allows us to responsibly plan ahead.
     
    Capital Reserve Funds are a legally permissible way for school districts across New York State to plan and save for large-scale projects. In fact, most school districts across Long Island already utilize this savings vehicle as part of their long-term planning and have for decades.

    Don’t we have other reserves the District can use for capital projects?
    The District has other reserves, but none that can be used for capital projects.
     
    The Port Washington Union Free School District does have other reserves, but not any that are legally allowed to be used to fund capital projects. To establish a Capital Reserve, school districts are required to bring a proposition before voters to have them agree on establishing one or multiple reserves. Further, unique to Capital Reserves, not only is voter approval required to establish the fund, but it is also required to spend money from the fund.

    Why do some districts have multiple capital reserves?
    Many districts have established multiple capital reserves over the course of a number of years. Since each capital reserve could have multiple purposes, or one singular purpose (like our proposed Facilities Program I Reserve Fund), districts are able to responsibly manage public resources while planning for the many varied needs across its facilities.
     
    We are seeking to establish a new capital reserve – a Facilities Improvement Program I Reserve Fund – at the May 17, 2022 vote. Why? Well, we know that with a district of our size (we have 7 buildings) and the expectation by our residents that we maintain our facilities to a certain standard, we need to continually be thinking long-term with respect to how to fund some of the large projects we know will need our attention in years to come.
     
    That is why we are requesting voters approve the establishment of a Facilities Improvement Program I Reserve Fund, funded up to $15 million over the course of the next 10 years so that we know funding will be available when our buildings are in need of facilities renovations… all without a financial impact to our taxpayers.

    What projects will the District complete with this money?
    This particular Capital Reserve Fund will be used to finance the cost of future district-wide replacements, renovations, upgrades, reconstruction, additions, and remediation of: electrical service, HVAC units, air handling, unit ventilators, furnishings and equipment incidental to said projects.
     
    The rules which surround Capital Reserve Funds ensure taxpayers will be informed in advance of all projects that the District will utilize this money for, as the funds require a vote to be set up and subsequent votes to use the funds. Therefore, you will know every step along the way.
 
 
RESOURCES
https://www.osc.state.ny.us/files/local-government/publications/pdf/reserve-funds.pdf

 

Proposition Language

RESOUTION APPROVING A PROPOSITION FOR SUBMISSION TO DISTRICT VOTERS REGARDING ESTABLISHING A CAPITAL RESERVE FUND

WHEREAS, the Board of Education (the “Board of Education”) of the Port Washington Union Free School District (the “Port Washington UFSD”) desires to seek voter approval to establish a Capital Reserve Fund known as the “Facilities Improvement Program I – Port Washington UFSD” for the following purposes: district-wide replacements, renovations, upgrades, reconstruction, additions, and remediation of: electrical service, HVAC units, air handling, unit ventilators, furnishings and equipment incidental to said projects; and

WHEREAS, the Board of Education now desires to approve a proposition regarding the establishment of the capital reserve fund, for submission to School District voters at the May 17, 2022 School District annual meeting, as required by law.

NOW, THEREFORE, be it resolved by the Board of Education as follows: 

Section 1.   The Board of Education hereby authorizes the submission of the following proposition to School District voters at the annual School District meeting to be held on May 17, 2022:

Proposition No. 2 – Proposition to Establish a Capital Reserve Fund to be known as the “Facilities Improvement Program I – Port Washington UFSD”  

SHALL the Board of Education of the Port Washington Union Free School District, pursuant to Education Law section 3651, be authorized to establish a Capital Reserve Fund known as the “Facilities Improvement Program I – Port Washington UFSD” for the purpose of district-wide replacements, renovations, upgrades, reconstruction, additions, and remediation of: electrical service, HVAC units, air handling, unit ventilators, furnishings and equipment incidental to said projects.  The maximum amount of the aforesaid Capital Reserve Fund shall be $15,000,000, plus investment income.  The probable term is to be 10 years; the funds are to be transferred from surplus monies, if any, remaining in the general fund and/or from existing reserves as allowed by General Municipal and Education Law including a sum not to exceed $5,000,000 from the 2021-2022 budget and thereafter not more than $5,000,000 for each remaining year of the probable term until the maximum amount of $15,000,000 is reached.  Upon the establishment and funding of said reserve, the Superintendent of Schools or his/her designee shall be directed to deposit monies of this reserve fund in a separate bank account to be known as the “Facilities Improvement Program I – Port Washington UFSD.”  Upon the establishment and funding of said reserve, the Superintendent of Schools or his/her designee shall be authorized to invest, from time to time, the monies of this fund pursuant to section 1723-a of the Education Law.

Results of the Annual Election
& Budget Vote

Tuesday, May 17, 2022

School Budget

Results will be posted after the polls close.

 

 

Yes

No

PROPOSITION NO. 1   2022-2023 BUDGET

RESOLVED, that the proposed budget of the Port Washington Union Free School District for the school year 2022-2023, in the amount of $174,834,928 as shown in the statement of estimated expenditures adopted by the Board of Education, be and hereby is approved, and that the amount thereof, shall be raised by the levy of a tax upon the taxable property within said School District, after first deducting the monies available from State Aid and other sources, as provided by law.

 

PROPOSICIÓN NO. 1 – PRESUPUESTO PARA EL 2022-2023

SE HA DETERMINADO que el presupuesto sugerido del Distrito Escolar de Port Washington para el año 2022-2023, por la suma de $174,834,928 como se muestra en el estado de gastos estimados adoptado por la Junta de Educación, sea aquí aprobado y que la cantidad del mismo sea recaudada por la tasa de un impuesto sobre la propiedad dentro del Distrito Escolar, después de deducir los fondos disponibles de la ayuda estatal y de otras fuentes, según lo permite la ley.

 

2,369

762

PROPOSITION NO. 2 – Proposition to Establish a Capital Reserve Fund to be known as the “Facilities Improvement Program I – Port Washington UFSD”    

RESOLVED, that the Board of Education of the Port Washington Union Free School District, pursuant to Education Law section 3651, be authorized to establish a Capital Reserve Fund known as the “Facilities Improvement Program I – Port Washington UFSD” for the purpose of district-wide replacements, renovations, upgrades, reconstruction, additions, and remediation of: electrical service, HVAC units, air handling, unit ventilators, furnishings and equipment incidental to said projects.  The maximum amount of the aforesaid Capital Reserve Fund shall be $15,000,000, plus investment income.  The probable term is to be 10 years; the funds are to be transferred from surplus monies, if any, remaining in the general fund and/or from existing reserves as allowed by General Municipal and Education Law including a sum not to exceed $5,000,000 from the 2021-2022 budget and thereafter not more than $5,000,000 for each remaining year of the probable term until the maximum amount of $15,000,000 is reached.  Upon the establishment and funding of said reserve, the Superintendent of Schools or his/her designee shall be directed to deposit monies of this reserve fund in a separate bank account to be known as the “Facilities Improvement Program I – Port Washington UFSD.”  Upon the establishment and funding of said reserve, the Superintendent of Schools or his/her designee shall be authorized to invest, from time to time, the monies of this fund pursuant to section 1723-a of the Education Law.

 

PROPOSICIÓN NO. 2 - Propuesta para establecer un Fondo de Reserva de Capital que se conocerá como el "Programa de Mejora de Instalaciones I – Port Washington UFSD"    

RESUELTO, que la Junta de Educación del Distrito Escolar Libre de Port Washington Union, de conformidad con la sección 3651 de la Ley de Educación, esté autorizada a establecer un Fondo de Reserva de Capital conocido como el "Programa de Mejora de Instalaciones I - Port Washington UFSD" con el propósito de reemplazos, renovaciones, mejoras, reconstrucción, adiciones y remediación de: servicio eléctrico, unidades de HVAC, manejo de aire,  unidad de ventiladores, mobiliario y equipos incidentales a dichos proyectos.  El monto máximo del mencionado Fondo de Reserva de Capital será de $15,000,000, más los ingresos por inversiones.  El plazo probable es de 10 años; los fondos se transferirán de los fondos excedentes, si los hubiere, que queden en el fondo general y/o de las reservas existentes según lo permitido por la Ley General Municipal y de Educación, incluida una suma que no exceda de $5,000,000 del presupuesto 2021-2022 y luego no más de $5,000,000 por cada año restante del plazo probable hasta que se alcance el monto máximo de $15,000,000.  Al establecer y financiar dicha reserva, se indicará al Superintendente de Escuelas o a su designado que deposite el dinero de este fondo de reserva en una cuenta bancaria separada que se conocerá como el "Programa de Mejora de Instalaciones I - Port Washington UFSD".  Al establecer y financiar dicha reserva, el Superintendente de Escuelas o su designado estará autorizado a invertir, de vez en cuando, el dinero de este fondo de conformidad con la sección 1723-a de la Ley de Educación.

 

 

2,150

573

 

 

Members of the Board of Education / Miembros de la Junta de Educación

Vote for Any Two (2) / Votar por cualquiera Dos (2)

Three Year Term / Término de Tres Años

Term Starts July 1, 2022 and ends June 30, 2025 / El mandato inicia el 1 de julio de 2022 y finaliza el 30 de junio de 2025

 

 

 

Number of

Votes

Michael Tretola

1,325

Emily Beys

1,970

Deborah Brooks

1,758