Honeoye Central budget workshop flags 7.5% increase, $8 million short-term debt

The Honeoye Central School District presented preliminary expenditure figures at a March 4 budget workshop, citing an estimated overall increase of roughly $1.5 million — about 7.5% from the current year — driven chiefly by personnel costs and out-of-district special-education placements.

Superintendent Fluke opened the workshop and turned the presentation over to business-office lead Mr. Belize, who told the board that personnel still accounts for about 65% of the district’s budget and that most labor contracts are settled except for support staff, where the district is using placeholder estimates.

“Fringe benefits — that’s our health insurance, workers’ comp, pension costs — those are known from district costs, but they are subject to change based off negotiations,” Mr. Belize said during the presentation.

The district reported a $441,000 (7.2%) increase in the district-instruction category and highlighted special-education pressures: the budget currently includes three extra out-of-district special-ed placements beyond the existing population and an average out-of-district special-education cost estimated at $70,000–$80,000 per student. Officials said those placements and tuition lines account for a substantial portion of the increase.

Mr. Belize also outlined short-term financing tied to the district’s capital project: the district plans to issue a bond anticipation note (BAN) of $8,000,000 and expects gross proceeds of about $8,300,000; he described a $300,000 difference as capitalized interest that will show as use of debt service but, he said, will not affect the tax levy.

“We will actually receive $8,300,000,” Mr. Belize said. “In a couple weeks ... you will see a use of debt service of $300,000, and that’s the difference that you’re seeing for the debt.”

Budget lines for buildings and grounds flagged a recent February utility bill spike of roughly 150% for one building, which officials attributed in part to reduced solar production last month and said they will investigate before recommending adjustments. The district also reported increases in fringe-benefit costs (health insurance increases described in the presentation at ~14.5% for health insurance and an 11.83% rise in fringe benefits overall).

Officials said they are using conservative placeholders for BOCES-related costs (a 6% placeholder was cited) while continuing to urge BOCES and the state to finalize aid figures. The superintendent noted the district’s New York State property-wealth calculation places Honeoye about 20% wealthier than the state average, a factor that operates against the district in state aid formulas.

Next steps include a March 18 workshop to discuss revenues, cabinet-level zero-based budgeting reviews, continued negotiations on unsettled contracts, and advocacy about the state aid formula.

The board did not take a formal vote on the budget at the workshop; Mr. Belize said the district will present updated revenue figures and final BOCES numbers at the next meeting before any levy decisions are made.