School District's Outstanding Debt and Pension Costs
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School District's Outstanding Debt and Pension Costs

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The debt service increase accounts for 0.65% of the proposed tax levy increase for ...

The debt service increase accounts for 0.65% of the proposed tax levy increase for
2013-2014; mandated pension costs to the Employees’ Retirement System (ERS) and the
Teachers’ Retirement System (TRS) total 2.31%. Together, these constitute 2.96% of the
proposed 3.19% (with STAR) tax levy increase.

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School District's Outstanding Debt and Pension Costs School District's Outstanding Debt and Pension Costs Document Transcript

  • Garden City Public Schools56 Cathedral AvenueGarden City, NY 11530Coordinator of Public InformationCatherine Knight516 478-1079April 15, 2013For Immediate Release:Garden City Public Schools’ “Question of the Week”In order to clarify the complex budget issues facing Garden City Public Schoolsas it formulates the 2013-2014 budget, the district continues its “Question of the Week”feature to provide information and address concerns expressed by residents. A completelisting of the questions and answers will be posted on the district’s website:www.gardencity.k12.ny.us.Our next question and answer concerns obligations for school improvementprojects and the bonds to fund them:Question of the Week:In addition to mandated pension contributions, a second driver of the 2013-2014school district budget is debt service. When will these obligations be fulfilled?Garden City Public Schools’ proposed 2013-2014 budget contains an increase of$605,029 for debt service. This is the increase for the combined monies owed for threebonds: the 2009 School Investment Bond, the 2005 middle school athletic field bond, andthe 1999 bond for district-wide building improvements, plus the district’s EnergyPerformance Contract (EPC). In 2013-2014, the district’s total debt service is $6,578,879(see chart below).The debt service increase accounts for 0.65% of the proposed tax levy increase for2013-2014; mandated pension costs to the Employees’ Retirement System (ERS) and theTeachers’ Retirement System (TRS) total 2.31%. Together, these constitute 2.96% of theproposed 3.19% (with STAR) tax levy increase.The bulk of the debt service is owed on the district-wide 2009 School InvestmentBond, a comprehensive expansion, restoration, and modernization program that wasapproved by community vote on October 27, 2009. A wealth of information about thebond is included on the “Bond Referendum Page” under the “Board of Education” tab ofthe district website: www.gardencity.k12.ny.us.The implementation of work on the bond proved to be “exquisite timing,”explained Superintendent of Schools Dr. Robert Feirsen. “Due to the economicconditions and school district’s strong financial rating, we received a low bond rate, andalmost all of the projects came in under anticipated costs.”As illustrated below, debt service (including the EPC) will dramatically drop offby $1.25 million in 2016, stay virtually flat for three years, and then dramatically drop
  • another $1.6 million in 2019 when the total debt service will be $3.9 million. All debtservice is set to be completed in 2022.Debt service is just one of the many components of the proposed 2013-2014school district budget. For complete information, visit the “Budget Information” sectionon the district’s home web page: www.gardencity.k12.ny.us.The District also welcomes Garden City residents to attend Board of EducationRegular and Work Sessions to ask questions and voice concerns. A calendar of thesemeetings is listed on the district website under “Board of Education.”