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MONTROSE, N.Y. - The Hendrick Hudson School District will have to issue a 10 year bond to pay for $407,591 in approved tax refunds for residents of Coachlight Square in Montrose.
The Board of Education approved the tax certiorari at its meeting Wednesday night. The tax certiorari, essentially a way for commercial and rental properties to grieve their property value assessment, was filed in 2004. The districts tax certiorari fund, which once had as much as $374,000 in it, has since been depleted, district officials said.
This is a problem that every school district is having, said Enrique Catalan, assistant superintendent for business. They are just coming fast and furious.
Issuing a 10 year bond will increase the cost of the tax certiorari because the district will have to pay interest on the money it's borrowing. Officials did not say what the likely interest rate on the loan would be. The districts borrowing costs recently increased because of a debt downgrade by the rating agency Moodys.
From a financial planning stand point, I dont think issuing long term debt should be used to cover current expenses, Robert Tinari, a financial services professional and member of the audience, said during Wednesdays Hendrick Hudson School Board meeting.
For us to cut an additional $400,000 from the budget would be devastating, said Catalan.
The district is currently facing a $2.7 million shortfall in order to present a budget that comes under the tax levy cap. As of Jan. 11, the district was facing a $3 million shortfall. Unexpected additional state aid of $200,000 allowed the district to cut some of the shortfall.
The district presented its administration budget after voting to allow a 10 year bond to be issued for the tax certiorari. The administrative budget increases costs by $66,301, which officials say is mostly "contractual."
In an effort to cut costs, the district reduced wages for substitute teachers by 10 percent, from $80 per day to $72 per day and from $150 to $135 for long term substitutes. The district is hoping to save $40,000 annually by cutting substitute teacher pay. The measure will go into effect for all substitutes Feb. 13.
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