The Hudson City School District will place a 5.5-mill operating levy on the November 7 ballot. It will be a continuing levy, which means it will not expire. Superintendent Dana Addis and Chief Financial Officer Phillip Butto explained why the district is seeking additional funds for the general fund.
Here’s what you need to know.
How long has it been since the district sought an operating levy?
The last operating levy – 4.9 mills – was approved 12 years ago.
How much will the 5.5-mill levy raise?
It will raise $7.243 million annually.
How much will it cost residents?
It will cost a homeowner $193 annually per $100,000 current valuation of their home.
What does the general fund cover?
The general fund covers all operations of the district – but not capital expenses.
Why is the levy needed?
The district’s general fund expenses have exceeded revenue for the past two years. In the fiscal year that just ended the district’s revenue was $70.4 million and expenses were $72.5 million.
Why have expenses increased?
About 80% of the budget, as in any school district, covers salaries and benefits.
And the cost of nearly every item used in the district, from paper to cafeteria food, has gone up, especially since the pandemic. Other areas with cost increases include insurance and shipping.
How are the deficits covered?
The district covers the deficit from its cash reserves. The district ended the current fiscal year with $29.4 million in cash reserves.
Continued…
Why can’t the district use more cash reserves instead of seeking a levy?
The Government Finance Officers Association recommends that school districts have enough cash reserves for 90 days of operations – which for Hudson would be about $20 million.
Why not wait until next year to put a levy on the ballot?
School administrators, the school board and residents who serve on the district’s financial advisory committee wanted to be respectful of taxpayers and chose to put the levy on this year. Next year home valuations are expected to increase following the required three-year reappraisal update.
Hasn’t the school district put levies on the ballot in recent years?
Voters approved a 30-year bond issue in 2018 for new and renovated schools. Voters also renewed a 1.1-mill permanent improvements levy in 2022. The levy, renewed for five years, can only be used for permanent capital improvements.