District News

Voters approve bus lease plan

Voters of the Canajoharie Central School District approved the district bus referendum on Wednesday, Mar. 10 by a margin of 92 yes - 17 no. The referendum authorizes the district to lease three school buses and to purchase two passenger vans in the 2010-11 fiscal year. The referendum asked voters to continue the current school procedure to lease buses rather than to purchase them.

Prior to the 2009-10 fiscal year, the district had traditionally purchased buses and replaced them every 10-12 years, but changes in the economy and changes in the way the state reimburses for transportation expenses convinced the Board of Education to explore other options.

Below is a series of questions often raised as people consider the referendum:

How many vehicles will the district lease and purchase?

Voters are being asked to approve the five-year lease of three 66-passenger buses at an annual cost not to exceed $17,000 (total $51,000 annually) and the purchase of two seven-passenger vans at a total cost not to exceed $40,000.

How will we pay for this and how will this impact our taxes?

The referendum authorizes the board to spend from the Bus Replacement Reserve Fund an amount not to exceed $91,000 (the total of the lease and purchase costs). The reserve funds will fully pay for the cost of the vehicles, and therefore will have no impact on taxes in 2010-11.

So if approved, the plan won't increase taxes next year—but what about future years?

The district is reimbursed for the majority of the lease costs through transportation aid from New York State. The remainder of the cost will come from money set aside in the Bus Replacement Reserve Funds. This transportation referendum will not require any additional taxes.

Why not purchase buses instead?

The cost to purchase the three buses is approximately $300,000. The district would be forced to drain all monies from the Bus Replacement Reserve Fund and would then be forced to raise taxes to cover any shortfall.

This year's proposed referendum is a continuation of a board decision approved by voters in April 2009 to use money from the Bus Replacement Reserve Fund in combination with state aid to transition the school fleet from district-owned to a five-year lease program. To purchase the buses would require additional tax revenue.

That decision to lease versus purchase was based on four factors:

1. The initial cost to purchase buses is high and creates dramatic changes in the tax levy from year-to-year. The lease plan allows the district to better spread the costs over time.

2. In combination with reserve funds and transportation aid, leasing will require no additional taxes through 2015-16.

3. Five-year leases assure that our transportation fleet is modern and safe for our students.

4. Newer buses require fewer costly repairs. In fact, major repairs will be covered under warranty. Under the former purchase-only policy, parts and labor to maintain aging buses often exceeded the value of the buses themselves.

The economy is bad and money is tight, why not delay any vehicle purchases or leases and use the money for other immediate needs?

Under the law, reserve funds can only be used for their originally intended purpose. In this case, we placed our transportation aid reimbursements in the Bus Replacement Reserve Fund to be certain that those funds would be used for their intended purpose—to maintain a safe fleet for our children. Had we left those monies in the general budget, we would have no way to pay for buses without drastically raising taxes.

What does the referendum actually say?

Shall the Canajoharie Central School District be authorized to

1. lease there (3) 66-passenger buses for a five (5) year term at an annual cost not to exceed $17,000 each (total $51,000 annually), commencing July 1, 2010 and terminating on June 30, 2015,

2. to purchase two (2) seven passenger vans at a cost not to exceed $40,000,

3. expend such sums for said leases and purchases; and

4. expend from the Bus Replacement Reserve Fund an amount not to exceed $91,000 for such purpose?

Who can vote?

To vote, you must be 1) a citizen of the United States, 2) 18 years of age or older, and 3) a resident of the school district for a period of 30 preceding the vote.

When and where do I vote?

Qualified voters may cast their ballots 12 noon-9 p.m. on Wednesday, March 10, 2010 at Canajoharie High School, 136 Scholastic Way, Canajoharie, NY.

What if I have more questions?

For more information, please contact District Superintendent Richard Rose at 673-6302 or via e-mail at richard.rose@canjo.org.