Setting the Tax Rate in 2012
From the Office of
Assistant Superintendent for Business
John J. Belmonte
Setting the Tax Rate
Needed Relief Given to Downtown Sayville Businesses
Last spring, the projected tax-rate increase of 2.33% in the Sayville School Proposed Budget was well under the new, calculated Tax Levy Cap required by New York State.
However, as the community is aware, there are many variables which go into setting the actual tax rate: one variable is the Assessed Valuation and the other is the Base Allocations between homestead and non-homestead properties.
Each year, the Town of Islip determines the taxable assessment or “Assessed Valuation” of all properties in Sayville and also provides the “Base Allocation” figure that represents the percentage of Homestead (Residential) and Non-homestead (Business) properties within the District. These values change annually based upon such things as the number of homes sold, new homes built, developed properties throughout the year, and Tax CERTs (adjustments to home owners’ taxable values). School districts receive this information in late August.
Based upon the final Assessed Evaluations and Base Allocations as provided by the Town of Islip this year, the Board of Education has set the final homestead tax rate at 3.22%. This tax-rate increase on a Sayville home assessed at 40K equals an increase of $244/year or $18.59/month before any S.T.A.R. exemptions. Sayville School District wants to assure the community that, even though this is slightly higher than the tax rate increase projected last May at budget time, it is still below the calculated Tax Levy Cap of 3.59%.
Homestead vs Non-homestead
The very good news is that, for the first time in several years, the shift in Base Allocations and Assessed Evaluations, as determined by the Town of Islip, will offer the necessary relief from the double-digit tax-rate increase which Downtown Sayville Business properties (non-homestead) have endured for the last two years. This 2012-2013 year, their increase is 0.26%. We are hopeful that this will give our local merchants a well-deserved boost to maintain their businesses and keep our hometown viable.
Other Business Office Updates
SALE OF THE LIBRARY: With the sale of the District-owned property that had been on the site of the old Sayville Library, the District has fulfilled one of our originally planned goals. Sayville sold the property at fair market value for $1,390,000. These funds have been set up in a tax-reduction reserve that can be used over a period of 10 years to help fund our existing debt-service expenses, thus taking the burden off the tax levy!
REFINANCING OF DEBT: Due to our excellent credit rating, Sayville School District refinanced a portion of our existing debt service. After carefully evaluating the current market and opportunities to refinance, the District moved forward with refinancing approximately $11.1 million of debt, allowing us to reduce the interest rate from 4.87% down to the lower rate of 1.18%, which will yield a potential saving of approximately $746,000.
These are yet two examples of how Sayville School District aggressively continues to pursue a variety of cost-saving measures that help us achieve fiscal responsibility which results in significant savings and allows our community to continue to support the many, excellent educational opportunities we provide for our students.
