K-L District Uses Fund Balance to Maintain Tax Rates Set in June

Homeowners in the Katonah Lewisboro school district will not receive any surprises in the mail when their tax bills arrive this month.

Though overall assessed property values went down after the budget was passed in June—which could have caused the tax rates to rise by a quarter of a percent—the board of education approved the use of an additional $230,000 in undesignated funds to reduce taxes.

"We felt we needed to maintain our credibility with taxpayers," said Michael Jumper, assistant superintendent for business.

The board approved the return of $2,955,000 in surplus funds to be returned to voters, and the use of $450,000 from reserve funds, which reduced taxes to where they were set prior to the budget vote on June 15.

Reserve funds allocated to the budget include $35,000 from the unemployment reserve; $265,000 from the  employee benefits accrued liability reserve, and $150,000 from the retirement contributions reserve, leaving it at $800,000—a sum that will sustain the district for a few years in offsetting retirement costs, said Jumper.

The district's remaining fund balance hovers around $3.5 million, at about 3.2 percent of the general fund budget—slightly lower than the 4 percent allowed under state law.

"We don't want to use the 'rainy day fund'like this every year—it's not sustainable. But some would say it's raining now," said Jumper.

When the books closed for the year, the district underspent the budget by about $2 million, said Jumper. The surplus was primarily derived from lowered fuel, heating and electric costs, in addition to personnel savings—by hiring the assistant superintendent of curriculum and instruction at a lower salary than her predecessor, for example.

On the revenue side, county sales tax remained flat and state aid was about what it was expected to be, but a refund of a prior year's expense—about $1.5 million set aside for the anticipated salaries and benefits for a support staff contract settlement—was added as a receivable for this year.