Budgets - Budget Newsletter

2022-2023 Proposed Budget

At the April 19 meeting, the Carmel Central School District Board of Education adopted a proposed $134,774,187 spending plan for the 2022-2023 school year. The adopted spending plan represents a 2.17% increase over the 2021-2022 budget and will rely on a proposed 0.97% tax levy increase.

We believe that we have prepared a budget that recognizes and addresses the challenges of the current economy for our schools and the community. We are proposing a 0.97% tax levy increase that is substantially lower than our calculated allowable tax levy limit of 3.57%.

On average, this 0.97% increase represents an annual tax bill increase of approximately $87-$96 for property owners in the Carmel Central School District. See more information on how the proposed tax levy increase may affect your tax bill below.

Similar to prior years, the work to create the proposed 2022-2023 budget included difficult decisions on where and what to reduce in order to meet the needs of our students, as well as understand the challenges of a tax increase for our community. Every area of our operating budget was examined when creating this spending plan to present to the community.

The proposed 2022-23 budget includes the following cost reductions:

  • Breakage with salary/retirements: $600,000
  • Continuing Education: $67,000
  • Supplies: $41,186• Transportation: $30,000
  • Building and Grounds: $30,000
  • Staff Reductions:
    • Middle School: 4.0 FTEs* – $560,000
    • Elementary Schools: 3.0 FTEs – $420,000
    • High School Electives: 2.0 FTEs – $280,000

*FTE = Full-time equivalent/full-time employee

This newsletter provides an overview of the proposed budget that taxpayers will vote on May 17, how tax bills may be affected, polling locations, Board of Education candidates up for election and more. Our website, carmelschools.org, also includes more information and details about the proposed 2022-2023 school budget as well as an archive of Board of Education meetings where the budget was discussed during the past few months.

Remember, your vote is important and every vote counts. Thank you for your support of our District and your continued partnership as we work together to educate the whole student to become lifelong learners in an ever-changing world.

We hope to see you at the polls on May 17!

Making Sense of Your Tax Bill

Carmel Central School District is proposing an increase to its tax levy by 0.97% for 2022-23. However, your overall tax bill may change by a different percentage if:

  • The value of your property has changed;
  • Your STAR reimbursement has changed; or
  • The proportion of school taxes paid by homeowners in your township changes.

How is your final school tax bill and tax rate set?

Your school tax bill and tax rate are determined by a combination of three factors, one of which is outside the district’s control:

  1. School Tax Levy: The total amount of money a school district needs to collect from property owners each year ($134,774,187 in the 2022-23 proposed budget). This is a 0.97% increase proposed for 2022-23, which is less than the district’s tax cap of 3.57%.
  2. State School Tax Relief Program (STAR): Partial school tax exemptions for owner-occupied homes. The Basic STAR and Enhanced STAR savings for each township can be found online:
    www.tax.ny.gov/pit/property/star/ex_index.htm.
  3. Property Assessments: Estimates of the value of how much a property would sell for under normal conditions. This information is determined by your town’s assessor. Once all factors are set, the final tax rate determines how much of the total tax levy each property owner pays.

How would the Proposed Budget Impact my Tax Bill?

With the proposed 0.97% tax levy increase, a Carmel Central School District home with a taxable assessed value of $350,000 will likely see an annual tax bill increase of approximately $87-$96. However, the figures provided assume School Tax Relief Program (STAR) exemptions, no change in the town assessed value, and no changes in the equalization rates.

The school district has no control over changes to town assessed values or equalization rates. These are subject to change as determined by each town and generally not set until later this summer. Any changes to those values could result in different annual tax changes for district homes.

Town Proposed 2022-2023 Tax Rate Proposed 2022-2023 Taxes 2021-2022 Tax Rate 2021-2022 Taxes Annual Tax Change ($)
Carmel 25.71857078 $9,001 25.47137789 $8,915 $87
Kent 28.40243125 $9,941 28.12944154 $9,845 $96
Patterson 25.72499742 $9,004 25.47780471 $8,917 $87
Putnam Valley 25.69901242 $8,995 25.45182023 $8,908 $87
Southeast 25.73091044 $9,006 25.48371825 $8,919 $87
East Fishkill 25.71626007 $9,001 25.46906789 $8,914 $87

Reserve Accounts & Fund Balance

Our reserve accounts allow for proper planning of unexpected expenses without having to dip into the general budget.

Account

June 30, 2021 

June 30, 2020 

Difference 

Reserve for Encumbrances 

This reserve is for expenditures for the previous school year that were not yet received and/or paid by June 30. These expenditures are normally paid during the months of July and August. This reserve is created and used each year. 

$1,130,131 $928,439 $201,692

Reserve for Tax Certiorari 

This reserve is for expenditures that arise when taxpayers in the District challenge the assessments of their property and file lawsuits to have their assessments lowered. 

$2,000,000 $1,798,315 $201,685

Reserve for Employee Benefits 

This reserve is for expenditures related to contractual obligations for retirees such as the payment of unused sick and personal days. 

$3,551,441 $1,732,281 $1,819,160

Reserve for Retirement Contributions 

This reserve is funds that are set aside to help cover the costs of large increases to the employer contributions to ERS and TRS, which can happen from time to time. 

$500,000 $500,000 $0 

Appropriated Fund Balance 

This is the amount that was used to reduce the amount of the tax levy for the 2021-22 school year. 

$2,200,000 $2,200,000  $0

Capital Reserve 

This reserve allows the District to set aside money for future construction projects and improvements of facilities. Voter approval is required to withdraw any funds from this account. 

$1,603,717 $1,103,716 $500,001

Unreserved-Undesignated Fund Balance 

By NYS law, this fund can be up to 4% of the current year’s budget and is reserved for unforeseen emergencies. 

$5,276,655 $5,221,655 $55,000
Total $16,261,944 $13,484,406 $2,777,538

Transportation Purchase/Lease Program

For the last several months, the Board of Education has been exploring the option to lease our bigger buses while continuing to purchase smaller buses and suburbans. The district’s current 114-bus fleet ranges in age up to 20 years old, with 63 buses currently in the 10–20-year range. The average life span of a bus is 10 years. The move toward leasing buses, rather than purchasing buses, will allow the district access to newer, state-of-the-art buses with fewer repair and maintenance costs that are associated with aging buses.

The costs associated with moving to such a program are factored into the proposed 2022-23 budget and the impact on future years’ budgets are outlined below:

10-Year Small Vehicle Purchase Program & 5-Year Big Bus Lease Plan

  2022 2023 2024 2025 2026 2027
Big Buses Leased 16 12 12 12 12 16
Small Buses Purchased 4 4 5 5 5 5
Suburbans Purchased 2 1 2 0 2 0
Big Bus Lease Cost $384,000 $288,000 $288,000 $300,000 $300,000 $416,000
Small Bus Cost $248,000 $248,000 $320,000 $325,000 $330,000 $335,000
Suburban Cost $104,000 $ 54,000 $110,000 $0 $115,000 $0
Total Cost for New
Leases & Purchases
$736,000 $590,000 $590,000 $625,000 $745,000 $751,000

 

  2028 2029 2030 2031 2032
Big Buses Leased 12 12 12 12 16
Small Buses Purchased 5 5 5 4 5
Suburbans Purchased 2 0 2 0 2
Big Bus Lease Cost $312,000 $312,000 $324,000 $324,000 $432,000
Small Bus Cost $340,000 $345,000 $350,000 $285,000 $355,000
Suburban Cost $120,000 $0 $120,000 $0 $125,000
Total Cost for New
Leases & Purchases
$772,000 $657,000 $794,000 $609,000 $912,000

 

Lease/Purchase Payments Required by District Each Year, 2022-2032

  2022 2023 2024 2025 2026 2027
Payments for Buses
Leased in 2022
$384,000 $384,000 $384,000 $384,000 $384,000 $416,000
Payments for Buses
Leased in 2023
-- $288,000 $288,000 $288,000 $288,000 $288,000
Payments for Buses
Leased in 2024
-- -- $288,000 $288,000 $288,000 $288,000
Payments for Buses
Leased in 2025
-- -- -- $300,000 $300,000 $300,000
Payments for Buses
Leased in 2026
-- -- -- -- $300,000 $300,000
Total Lease
Payments
$384,000 $672,000 $960,000 $1,260,000 $1,560,000 $1,592,000
Total Purchase
Costs
$352,000 $302,000 $430,000 $325,000 $445,000 $335,000
Total Budget $736,000 $974,000 $1,390,000 $1,585,000 $2,005,000 $1,927,000

 

  2028 2029 2030 2031 2032
Payments for Buses
Leased in 2022
$416,000 $416,000 $416,000 $416,000 $432,000
Payments for Buses
Leased in 2023
$312,000 $312,000 $312,000 $312,000 $312,000
Payments for Buses
Leased in 2024
$288,000 $312,000 $312,000 $312,000 $312,000
Payments for Buses
Leased in 2025
$300,000 $300,000 $324,000 $324,000 $324,000
Payments for Buses
Leased in 2026
$300,000 $300,000 $300,000 $324,000 $324,000
Total Lease
Payments
$1,616,000 $1,640,000 $1,664,000 $1,688,000 $1,704,000
Total Purchase
Costs
$460,000 $345,000 $470,000 $285,000 $480,000
Total Budget $2,076,000 $1,985,000 $2,134,000 $1,973,000 $2,184,000

Proposed Budget 2022-2023

Administrative Budget

Administrative 2022-2023 2021-2022 Variance 
Board of Education $50,600.00 $44,600.00 $6,000.00
Central Administration $349,220.00 $352,286.00 ($3,066.00)
Finance $1,444,822.00 $1,493,978.00 ($49,156.00)
Legal Services $166,160.00 $125,000.00 $41,160.00
Personnel $384,847.00 $312,155.00 $72,692.00
Records Management  $3,250.00 $3,250.00 $0.00
Public Information 
$156,495.00 $133,200.00 $23,295.00
Other Central Services 
$1,642,034.00 $1,071,302.00 $570,732.00
Other Special Items 
$1,327,419.00 $1,283,178.00 $44,241.00
Curriculum, Development & Supervision 
$378,372.00 $455,995.00 ($77,623.00)
Supervision, Regular School 
$2,763,279.00 $2,437,814.00 $325,465.00
Research, Evaluation & Planning 
$208,760.00 $104,015.00 $104,745.00
Employee Benefits 
$2,418,958.00 $2,404,381.00 $14,577.00
Total Administrative Budget 
$11,294,216.00 $10,221,154.00 $1,073,062.00

 

 

 

 

 

Program Budget

Program  2022-2023 2021-2022 Variance
Legal Services  $50,525.00 $45,000.00  $5,525.00
Instruction 
$68,147,452.00 $68,100,411.00 $47,041.00
Other District Transportation 
$5,447,536.00 $5,029,620.00 $417,916.00
Garage Building
$715,124.00 $736,967.00 ($21,843.00)
Community Service
$365,000.00 $365,200.00 ($200.00)
Employee Benefits
$33,558,241.00 $32,628,887.00 $929,354.00
Total Program Budget
$108,283,878.00 $106,906,085.00 $1,377,793.00

 

Capital Budget

Capital 2022-2023 2021-2022 Variance
Operation of Plant $7,344,903.00 $7,296,323.00 $48,580.00
Judgements & Claims
$100,000.00 $100,000.00  $0.00
Refund of Taxes
$100,000.00 $100,000.00 $0.00
Purchase of Buses
$352,000.00 $0.00 $352,000.00
Debt Service
$4,880,232.00 $4,890,486.00 ($10,254.00)
Transfer to Capital
$0.00 $0.00 $0.00
Employee Benefits
$2,418,958.00 $2,402,338.00 $16,620.00
Total Capital Budget 
$15,196,093.00 $14,789,147.00 $406,946.00

Total Budget

Total Budget  2022-2023 2021-2022 Variance
Total Budget
$134,774,187.00 $131,916,386.00 $2,857,801.00