by Mike Schnitzel
The district is asking voters to approve a reserve fund, which would be allowed to accumulate $7 million, plus interest, over seven years.
The Herald sat down this week with Superintendent Dr. Marc Bernstein and Deputy Superintendent Al Chase to discuss aspects of the capital reserve fund proposition and what it means to Valley Stream taxpayers.
Q: What is a capital reserve fund?
Chase: It's a fund authorized by the state for school districts to use to accumulate money over time for the purpose of putting into place capital projects that might not be doable through the general budget, with the only alternative being a bond issue.
Q: Why not ask the voters to approve another bond issue?
Bernstein: The last bond was for $37 million and was passed in 1998, so we're still paying that off. We would prefer to pay off that bond before we assume another set of indebtedness and there are projects that should not have to wait that long to be done.
Q: Why not take the money for needed projects out of the general fund?
Bernstein: To do that would raise taxes immediately or require a reduction in our educational programs. We would rather use a capital reserve fund as a savings account to accumulate the money we've asked the community to authorize.
Q: Where does the money for a capital reserve fund come from?
Chase: The money would come from excess revenues we received above the anticipated budget or through unexpended funding in the budget.
Q: What can the money be used for?
Chase: We are allowed to use the money for any long-term major capital projects (such as asbestos abatement or roof replacement).
Q: When can you use the money?
Bernstein: The community must approve the withdrawal of money from the capital reserve fund that the district wants to appropriate for capital projects. So, the community has to vote for the fund to be established, and then vote to approve expenditures from the fund.
Q: What happens to the money after the capital reserve fund expires?
Bernstein: If there is any money left after seven years it can continue to be used for capital projects or be put back into the balance of the general fund.
Q: How much money would the average taxpayer receive if the capital reserve fund was voted down?
Chase: We've calculated that the average homeowner would receive $35 per year over the seven years based on an estimate of $1 million appropriated per year to offset the tax levy.
Q: How did you come up with the time frame and dollar amount for the capital reserve fund?
Bernstein: Since we are paying the principal and interest on the 1998 bond for the next seven to 10 years, we don't want to think about another bond until the 1998 bond is paid off. We can't see needing to appropriate more than $1 million per year for the projects we need to do.
Q: Why should voters approve a capital reserve fund?
Chase: It's a great planning tool. We're looking at this as long-term planning, and under a capital reserve fund we will have the ability to take care of any major capital projects as they arise.
Comments about this story? Mschnitzel@liherald.com or (516)569-4000 ext. 265.
