Hendrick Hudson board accepts clean audit, weighs capital reserve and fund‑balance use ahead of May vote

An external audit presented to the Hendrick Hudson Central School District Board of Education on Feb. 5 found the district’s financial statements for the fiscal year ended June 30, 2024, presented fairly and without qualification. Rob Danielle of PKF O’Connor Davies told the board the firm issued an “unmodified opinion” and reported no allegations of fraud during the audit process. The board voted to accept the audit and the accompanying corrective action plan.

The auditor said the district ended the year with a $3.7 million increase in its general‑fund balance, bringing the balance to about $29.2 million. Danielle highlighted revenue drivers that contributed to the surplus, including property tax receipts, a temporary state grant and higher‑than‑expected out‑of‑district tuition receipts. “You have revenues that exceeded your expenditures by $3,700,000,” he said.

The audit presentation led into an extended finance discussion about how much fund balance the district should use to balance the 2025–26 proposed budget and whether to place a voter‑approved capital reserve on the May ballot. District staff explained the tax levy limitation law (the tax cap) and said the currently available levy room would allow a 4.58% increase without triggering a supermajority requirement. Jill Figueroa, who introduced the audit presentation and handles business‑office communications, said the administration recommends limiting use of fund balance to $3.7 million — the same amount used in the prior year — rather than a larger figure shown in some projections.

Board members pressed staff for multi‑year projections showing remaining fund balance if the district uses $5.2 million this year versus a smaller amount. One board member warned that the district will see decreasing state cessation funds tied to the Indian Point closure and urged caution: “We’re actually getting … 12.6 [million] last year, 10.6 this year and 8.6 next year,” a board member said, noting a $2.2 million annual decline the district must plan around.

On the reserve question, the administration outlined a proposed capital reserve proposition drafted under New York Education Law §3651 that would, if approved by voters, establish a capital reserve up to a stated limit and for a stated term (for example, up to $5 million over 10 years). Staff emphasized that establishing such a reserve on the ballot does not require an immediate deposit of funds; money can be added in future years from unspent appropriations or other lawful sources. The board indicated the sense of the body was to move forward with putting a capital‑reserve proposition before voters and asked administration to return with specific proposition language and finalized projections.

The next finance steps include a finance committee review, line‑by‑line staffing and retirement projections, and updated state aid and assessed‑value information before the board finalizes a recommended budget for the May 20 vote.

What happens next: the board accepted the audit and corrective action plan, asked staff for updated multi‑year projections of fund balance under different scenarios and agreed to advance a draft capital‑reserve proposition for future review and public notice.