GUILDERLAND — The school board here had a lively debate Tuesday about what to do with a surplus of about $400,000 in its fund balance.

The rainy-day account would have totaled $1.99 million by the end of the year, which would have been over the 2 percent of next year’s budget allowed by the state.

Assistant Superintendent for Business Neil Sanders recommended putting $100,000 into a tax certiorari reserve fund the board set up last year, and creating a retirement contribution reserve fund for the remaining $300,000.

While some school-board members said the money should be returned to the taxpayers, the majority prevailed, in split votes, determining the surplus will be put in the reserve funds.

The board approved, by a vote of 8 to 1, putting $100,000 into the tax certiorari fund; it will be used to pay judgments and claims resulting from tax certiorari proceedings.

Board member Peter Golden cast the lone dissenting vote. He questioned the need for such a large sum.

Last year, the town of Guilderland revalued properties, resulting in a large number of tax challenges; $17,000 remained in the fund. With the added $100,000, the reserve fund will now total $117,000.
"Why not bring it back to where it was"" asked Golden.

Many of the challenges from homeowners have been settled in small claims court, said Sanders, but a number of challenges from commercial establishments remain.

While there are fewer commercial challenges, said Superintendent Gregory Aidala, they can cost more money.

Board split on retirement fund

The discussion over the retirement fund was longer and more heated. The board was presented with two recommendations — one to establish the fund, and the other to put $300,000 into the fund to finance retirement contributions.

In 2004, a plan designed by the state’s comptroller, Alan Hevesi, allowed school districts to set aside money to pay their share of retirement costs, Sanders told the board.

Guilderland’s state-required contribution to retirement plans has risen by $900,000 in the last five years, he said.

Board member Richard Weisz, long a proponent for spending the fund balance, opposed setting up the new reserve fund.
He began by praising Aidala and Sanders for "sound management," and said that more state aid than expected this year along with underspending on projects had led to the surplus.
"But it’s not our money...I hate taxing anyone to have money in our piggy bank," said Weisz. "I’m against creating another reserve fund."

He went on to say that the district had estimated there would be a 4.18-percent tax hike with the $79 million budget passed by voters this spring; the tax rates aren’t final until August.

Before spending the $300,000, Weisz said, he would like to know what the tax rate will be.
He said he understood all the good reasons for creating a reserve — such as evening out the impact of required increases — but he concluded of the tax rate, "If it turns out to be an iota more, I want to give it back."
Board member Barbara Fraterrigo had other ideas for spending the funds. "We have the extra money," she said. "We have had a diminution of our advanced courses...I want to see us beef up our gifted-and-talented program," she said, particularly with computer sciences.
"Our kids deserve better," said Fraterrigo.

Board vice President Linda Bakst favored establishing the fund.
"It gives us flexibility," she said.

Bakst said that, when Governor George Pataki did not sign legislation that would have increased the limit to 5 percent, he said he preferred creating reserve funds.
"Good management says 5 percent, not 2 percent," said Bakst, and a reserve fund is a way to add the extra security.
Board member Thomas Nachod said that, even if the current board chooses not to put money in the reserve fund, "I think we need to establish the fund...[and] allow future school boards to use it."
"It gives us the ability to do more for the kids...and the taxpayer," said Dornbush.
He also said, as voters went to the polls, "We didn’t promise a tax rate...We promised a spending ceiling."

Board member Colleen O’Connell asked about the consequences of being over the state-set 2-percent limit. She wondered if it would affect the district’s bond rating.

Sanders replied that the district would be sent a letter noting it had exceeded the limit and would need to submit a plan to spend it.
"It’s not our money," said Golden. "We didn’t earn it. We took if from people who worked for it."

Golden went on to point out that the board has a policy of not voting on resolutions at the same meeting in which they are presented; a vote at the same meeting requires a two-thirds majority.
"We’re facing a June 30 deadline," said Aidala, stating that information was sent to board members two weeks ago so they would have time to think about it.
"We’ve never held to that two-thirds standard," said Bakst.
"Then let’s get rid of the rule," said Golden.

President Gene Danese then hastened to call the vote on establishing the reserve fund. It passed by a tally of 2 to 7, with Golden and Weisz dissenting.

Danese then called a vote on the second resolution, appropriating $300,000 from the fund balance for the retirement reserve fund. That passed by a vote of 4 to 5.

Catherine Barber, Fraterrigo, Golden, and Weisz opposed the plan while Bakst, Danese, Dornbush, Nachod, and O’Connell approved it.
"Bridge" money

Earlier in the meeting, the board had authorized, by unanimous vote, issuing up to $3.8 million in Tax Anticipation Notes in anticipation of the receipt of taxes to be levied for the fiscal year ending on June 30, 2007.
"We’re cash poor at the beginning of the year," Sanders told the board, stating that the notes help him "bridge" until the tax levy comes in.

Last year, the district borrowed $5 million and the year before, $5.2 million.

Sanders told The Enterprise later that the cost of interest for the $3.8 million in "bridge" money is roughly $45,000.
Asked if the district could save this annual interest cost if it had a larger-than-allowed fund balance, Sanders said, "If we had extra cash in hand, we wouldn’t need to borrow."
He pointed out, though, that to save the interest costs would entail having "a significant amount of money" in addition to the current fund balance.

Other business

In other business, the school board:

— Applauded and praised a documentary, The March on Washington: Standing Up for Freedom, produced by Farnsworth Middle School eighth-graders Casey Gerety, Sohee Rho, and Katie Wells.
The trio took home an "Outstanding State Entry Award" at the National History Day competition;

— Appointed and was introduced to Mary Helen Collen, the district’s new data consultant;

— Approved updated versions of state-required plans for professional development, safe schools, and academic intervention services;

— Adopted policies on ethics, purchasing, district-owned cell phones, expense reimbursement, meals and refreshments, and wellness;

— Honored retiring board leaders Bakst and Danese with accolades, plaques, and a punch-and-cookies reception. Each had served three three-year terms.

In praising Bakst, Weisz said that, in recent years, public discourse has fallen from the noble ideal of sharing a common goal to become a battle over winning or losing.
"With you," he told Bakst, "it’s not about winning and losing, but about what is best for the kids."
Weisz read a resolution that said Bakst’s actions and leadership were always "guided by higher moral principles."
Weisz also said of Bakst’s future plans, "In a way, you graduated or retreated." She will be working on policy for the New York State School Boards Association.
Nachod praised Danese, saying, "You have always, always championed what is best for youth."
A former board president himself, Nachod also told Danese, "You always conducted yourself with dignity and grace, sometimes in trying situations...I’ve been privileged to count you as a friend and a peer."
Nachod then read a resolution that lauded Danese for always grounding "his views in a thorough understanding of the district’s mission — empowering all students to succeed in the 21st Century."
Danese had the last word. "Everyone brings something to the table I respect," he said. "But it hasn’t always been fun"; and
— Heard from Nachod that he had, as the board asked, surveyed current members to see who wants to lead the board. Two want to run for president and no one for vice president, Nachod said, concluding, "So it looks like we’ll have a race."

The Enterprise asked Nachod after the meeting who the contenders for president are; he declined to name them.

The board will elect its leaders July 11, at its reorganizational meeting.