In Rare Move, Putnam Valley Schools Further Reduces Taxes
After a New York State Comptroller’s Office audit report made recommendations to the Putnam Valley school district to improve its budget process and reduce taxes, the Putnam Valley Board of Education took action in light of the report last week.
Homeowners in the Putnam Valley school district are in for a pleasant surprise when they receive their tax bill next month after the school board opted to lower its tax levy even more than the budget that was voted on in May.
District treasurer Jill Figarella told the school board Thursday night the district financials indicate there will be a surplus of $870,000 this year and that the tax levy should be lowered an additional $370,00. Figarella also recommended the board allot the other $500,000 into the newly formed capital reserve fund.
The board voted 3-0 in favor of both proposals. (Two board members were absent.)
The overall tax levy reduction would now be 1.3 percent, Figarella said. Over the last two years the decrease has been 1.8 percent or $651,000, she added.
She noted reducing the tax levy so close to tax bill time is not something the district usually does. (Putnam Valley is the only school system in the county to reduce taxes two years in a row.)
School board member Guy Cohen said lowering the tax levy was discussed at the most recent audit committee meeting and the committee “strongly supported” the recommendation. Board vice president Joseph Ferraro said the possibility of lowering the tax bill even more started when the board adopted this year’s budget in April and based on projections back then, they thought there might be surplus to lower the levy even more.
Board member David Spittal said he was concerned as the tax cap continues to get less flexible, that giving money back to the taxpayers would make future budgets tougher and potentially increase class sizes. He supported the move put forward because he felt it was “conservative and fiscally responsible.”
“And some people would ask why not more,” Spittal said. “My answer would be for the fiscal responsibility I would think about the long term.”
Ferraro also said it was important to put money into the capital reserve fund so the district is prepared for any capital expenditures it might need to address as part of the five-year physical plant plan or any other project that might come down the pipe.
Figarella also went over the first reading of a policy change connected to the school district’s fund balance and reserve funds, following guidelines made by the audit.
The audit had called for better transparency with voters about where funds where going during the budget process and not putting too much money in reserves and fund balance. The audit reviewed the district from 2010 to February of this year.
Figarella noted in 2016, out of the 230 school systems the comptroller’s office audited, 109 had similar or the same recommendations that Putnam Valley received. Putnam Valley was already working on polices the audit suggested prior to the report being released, Figarella added.
“While we appreciate the comptroller’s recommendations, we also recognize the necessity to maintain strong reserves,” she said.
Cohen noted unforeseen costs like an additional student or students moving into the district after the budget passes are one of the reasons why it’s important to have strong reserves. The timing between the state budget, which gives funds to school systems, and school district budget also makes it hard to predict costs, he added.
“I think one of the keys is the uncertainty,” Ferraro said.
