Island Park school taxes going up in 2010-11

At a meeting on April 12, the Island Park School District unveiled the revenue side of its budget, which includes a 2.83 percent increase in the district’s tax levy.

The levy, increasing from $28.1 million to $28.9 million, is the money that the district raises through taxes to pay for its expenses. Homes and businesses will not be bearing the full brunt of that increase, though, as the power plant in Island Park pays 46 percent of the district’s tax levy—over $13 million.

The increased tax levy means that taxes will be going up. However, how much taxes will increase is yet to be seen. The tax rate, which is determined by the county and has not yet been revealed, is how much each home pays, based on its assessed value. From 2008-09 to 2009-10, the taxes Island Park residents paid increased by about $100.

Part of the problem that school officials said they had when planning this year's budget was not only increased expenses but decreased revenues as well. The district’s revenues decreased by over $628,000 between budgets due to decreases in state aid, federal stimulus money and other miscellaneous sources.

There was one positive note that Superintendent Dr. Rosemarie Bovino was able to present, however: the district’s bond rating recently increased to AA+, and because of that, the district was able to refund its bonds at a lower interest rate, from 5.21 percent to 2.24 percent. The decrease will save taxpayers over half a million dollars in the next

ten years.

The board was slated to formally adopt the budget at its meeting on April 20.

Comments about this story? ACostello@liherald.com or (516)569-4000 ext. 207.