Mineola eyes bond for capital needs

Richard Tedesco

Mineola Superintendent of Schools Michael Nagler recommended Thursday night that the school board consider a bond issue to address at least a portion of the $16 million in repairs and upgrades identified as needed in a building survey last year.

Nagler said the most urgent repairs needed include the replacement of windows and doors at the district’s seven building, replacement of heating units at four schools and the repointing the brickwork on all seven district buildings. He also said a new boiler is needed at Mineola High School. The school district’s architectural firm, H2M, conducted the survey and made the estimates. 

“We still have infrastructure issues,” Nagler said. “None of these things are jazzy,”

Nagler’s discussion of the district’s capital needs was made at a board meeting focused on district finances and the 2013-14 school budget. Included was a report by the district’s auditor that concluded that the district’s finances showed “no internal weaknesses.”

Nagler reported to the board that a “rollover” budget for the 2013-14 fiscal year, which would retain all existing academic programs, would be approximately $86 million – a 2.38 percent increase over the $83.99 million budget approved by voters for the 2012-13 school year. He said $550,000 would have to cut from “rollover” budget for the district to stay within the parameters of the state-mandated tax cap.

“We’re confident we can get that out without losing program,” Nagler said.

Nagler said he thought the school board could stay within the cap by proposing a tax levy of $77.94 million for the 2013-14 fiscal year – a $1.7 million increase of 2.23 percent over the current year’s tax levy of $76.24 million. 

But, he added, “We don’t know what the fiscal numbers are now.”

Among those uncertain numbers is next year’s rise in costs for the teachers retirement system, which is expected to increase between 15.5 percent and 16.5 percent.

Nagler said in recommending the bond issue he was trying “not to spike our budget.” 

“If you’re able to do all these thing and keep your budget flat, that’s what we want to do,” Nagler said.

He said the cost of a $4.1 million bond at current interest rates would be $500,000 per year over 10 years. 

While Nagler said “bond was more than another four-letter word, he appeared to recognize the resistance a proposal to borrow money could meet from the public – a sentiment shared by school trustees. 

“The facilities need to be looked at. Tough sell,” said school board Vice President Terence Hale.

Board Trustee Christine Napolitano said a bond was an acceptable trade off to maintaining a minimal increase on the school district budget.

“If there is the commitment that we can keep the cap at 2.5 [percent] and still do this, it’s something we should discuss,” she said, adding, “It’s overcoming the resistance to that word ‘bond’.”

The district’s capital needs were identified last year in a district buildings survey that is conducted every five years.

The survey estimated that the replacement of windows and doors at the Jackson Avenue, Hampton Street, and Meadow Drive Schools and former Cross Street School, would cost $1.8 million and replacement of ventilators at the four schools would cost $2.6 million. Repointing of seven school buildings would cost more than $1 million.

The survey, Nagler said, also called for  upgrades in schools security costing $250,000 to $400,000. Included would be security cameras, door access cards, magnetics locks on exterior doors and so-called “man traps” for secure vestibule entrances. 

Nagler said needs evidenced by Hurricane Sandy include $500,000 for a generator to keep the district’s Network Operations Center operating and a gas filling station.

David Tellier, a partner in Nawrocki Smith, the Mineola School District’s outside auditor, said his review of the district’s finances showed that as of May 31, 2012, there was $6 million in the school district’s general fund, with $1 million of that earmarked to help reduce next year’s district budget. He said there was $730,000 in restricted funds and $4.6 million in undesignated funds.

He said a loss of $632,000 in the budget was considerably less than a projected loss of $2.1 million for the year. Tellier also noted that bond debt had been reduced by $1 million to $1.9 million.

“It’s a very positive report,” Tellier said. “Your debt’s going down. Your loss for the year was less than projected.”

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