Board of Education to begin its budget review

One part of the 2017-18 school district budget that will show a major increase is spending for capital/facilities. Much of that spending will be repaid by grants and state aid, according to district business official Tim Laube.

Grant money flows slowly and is not likely to be in local coffers for 12 to 18 months, Mr. Laube said. That means, he said at Monday night’s budget workshop, the district has to lay out the funds and absorb “the hit” that occurs because the money isn’t in an interest-bearing account.

Plans call for using money from the district’s fund balance to cover the costs, meaning it won’t affect the 2017-18 tax levy — the amount of money that comes from property taxes to cover spending.

The district will eventually see a $250,000 grant secured by Assemblyman Fred Thiele Jr. (I-Sag Harbor) that will offset the cost of a linkup with a new septic system being installed at the American Legion Post, which will provide improved septic systems for the two buildings

Other capital projects expected to be financed by that grant and state aid are security upgrades and improvements to a bathroom to make it handicapped accessible.

The district’s debt service costs will see an increase as payments for a 2014 bond voters approved to pay for new boilers and other improvements rises from $137,900 this year to $141,400 next year. The district projects its energy performance the contract will cost $83,000 next year as it did this year.

But Mr. Laube pointed out that contract with Syosset-based Johnson Controls guarantees the district will see more in energy savings than it spent for changes that make the building more efficient.

Already, he projected a 30 percent savings in heating costs for the building because of the installation of new boilers.

Again, the district is taking a tax anticipation note — the amount of money it borrows in the early months of the fiscal year beginning July 1 to cover expenses until property tax money arrives in January 2018.

Munistat, the financial adviser based in Port Jefferson Station, which provides projections on likely market changes and executes bidding on the district’s tax anticipation notes, forecasts there could be higher interest rates by next fall.

A line that could concern taxpayers is a call for a 23 percent increase in costs of plant operation, maintenance and operations and management staff benefits. But again, with state aid, that percentage is expected to be a bit more than a 3 percent increase without the included grant funds, the business manager said.

One part of the budget that typically costs the district more than it garners in income is the cafeteria operation. It will see a 2 percent increase in the next fiscal year in salaries and contractual services, but overall staff benefits will drop slightly by 0.4 percent, Mr. Laube said. Much of that savings comes from the lower cost of health insurance by changing carriers.

The precise numbers in each category will be available at future workshops, currently set for March 6 and March 20 at 6 p.m.

At the March meetings, Board of Education members will begin to scour the overall budget for areas where spending might be adjusted.