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Carmel school finance team backs 0.75% levy increase to shore up reserves and improve bond rating
Summary
Assistant Superintendent Ken Silver presented a 2025-26 budget that relies on higher-than-expected interest income and modest state aid gains and proposes a 0.75% local tax‑levy increase (about $53 a year on a $350,000 assessed home) to preserve reserves and move toward a higher bond rating.
Assistant Superintendent for Business Ken Silver told the Carmel Central School District board on March 25 that the district’s 2023–24 finances ended with roughly $3 million less spending and about $3 million more revenue than projected, largely from unexpected state aid and unusually high interest earnings. Silver said the district realized roughly $1.6 million more in interest income than budgeted last year and expects elevated, though lower, interest receipts for the 2024–25 year.
Silver presented a draft 2025–26 budget that assumes $1.4 million in investment income and a Foundation Aid increase of about 3.62 percent compared with the current budget. To avoid drawing down reserves for recurring costs and to help improve the district’s bond rating (now in the AA range), the administration recommended a steady, modest local levy increase of 0.75 percent. Silver characterized that increase as “minimal” and estimated it would raise taxes about $53 annually for a home with a $350,000 assessment.
The administration emphasized the levy is intended to stabilize recurring revenue and said rating agencies prefer steady revenue over repeated use of reserves. Silver outlined existing reserves—about $25 million today with expectations of $27–28 million by June 30 after anticipated additions—and said the board has authorized a new repair reserve (up to $3 million) to pay for ongoing work on recently completed projects.
Trustees pressed for additional comparative metrics before the public release of materials: Trustee Wise asked that neighboring districts’ poverty rates, business‑tax bases and shares of taxpayers on fixed incomes be shown alongside budget and tax‑increase figures. Administration agreed to provide those contextual data and to supply line‑by‑line numbers and scenario modeling at the next meeting. Silver also noted the district will publish the detailed spreadsheets and promised more granular figures on retirements, positions and estimated net personnel savings by April 8.
Next steps: the board will receive further line‑by‑line figures and comparative metrics, and the administration will present final numbers in advance of the district’s budget hearings and the May 20 vote.
