Comptroller criticizes Clifton-Fine Central School
STAR LAKE — The state comptroller’s office has criticized Clifton-Fine Central School District in an audit that determined it overestimated expenditures by a total of $4.5 million over five years, resulting in the levying of unnecessary taxes.
“The district had operating surpluses totaling $2.3 million in four of the last five years. And it did not need to use the majority of the $1.2 million fund balance which the board appropriated as a revenue source in the general fund budgets over the last five years,” the comptroller’s statement said. “Despite its budgetary surpluses, the district also increased its real property tax levy by approximately $300,000 – a total of 8 percent – over the last five years.”
The comptroller’s office determined that district officials did not adequately inform taxpayers about how seven general fund reserves were funded and overfunded four of the accounts.
No wrongdoing was found.
In its response, the district said its fiscal practices were sound.
“In light of the extremely turbulent fiscal condition of New York State and the potential for large decreases in state aid that all school districts are facing, the budgeting practices exercised by the district appear prudent and fiscally responsible,” Superintendent Denise L. Dzikowski wrote. “It is true that these practices have resulted in budgetary surpluses. However, the surplus was utilized to fund reserves and has been and will continue to be used, in even greater amounts based upon an increased need, in subsequent years as budgeted revenue.”
Mrs. Dzikowski, who started work as superintendent Dec. 1, 2010, intends to leave the district by July to become the Lyons Central School superintendent.
The audit generally covers the period July 1, 2008, to June 30, 2010.
In Clifton-Fine’s response to the audit, Mrs. Dzikowski said the district has tried to establish a consistently low level of tax increases rather than have a tax rate that fluctuates wildly.
“Over the last five years the district has averaged a tax increase of 1.6 percent per year,” she wrote. “We also currently, and for the past several years, have the second lowest tax rate in the St. Lawrence-Lewis Board of Cooperative Educational Services.”
Unexpected expenses, such as meeting the needs of special education students who may move into the district, can be financially devastating to a district the size of Clifton-Fine, she said.
The district has approximately 335 students and 90 employees.
Mrs. Dzikowski assured auditors that the district reviews its reserve amounts regularly.
“A five-year plan is now in place that takes into account upcoming retirements as well as projected needs in other areas. A trend analysis has been completed to look at the use of Worker’s Compensation as well as unemployment and projections for staff reduction have been included in the analysis,” she wrote. “A review of our bond prospectus shows that our rating for long-term debt financing enjoys an outstanding rating for a school of our size and poverty. Because we have the reserves, the net result is lower borrowing costs to our taxpayers, which has the net effect of reducing property taxes.”
The comptroller’s office also determined that the district did not claim all of its eligible miles for state aid, which resulted in a loss of $26,500 for 2009-10 and $23,000 for 2010-11.
