001Good evening everyone. We'd like to call the meeting to order and welcome everyone. This meeting is being held in accordance with schedule of adopted at the organizational meeting held January 5th, 2026. Adequate notice of this meeting of the Kenilworth Board of Education has been provided to the Home News Tribune, Kenilworth Star-Ledger or the Star-Ledger, the local source on January 15th, 2026. A copy has been filed with the Kenilworth Borough Clerk, posted in the Board Office, the Kenilworth Borough Hall, Brearley and Harding schools as is provided by the Open Public Meetings Act. In addition to the notice, notice of this public hearing had an advertised budget was posted to the district's website in the legal notices section on April 9th, 2026, following the approval of the Executive County Superintendent of Schools. Thank you, Mr. Canale. Can
002you please rise for the salute to the flag? I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Mr. Canale, can we please have a roll call? Yes. Thank you. Feiner? Here. Fricchione? Here. David? Here. Giamattre? Here. Gerdine? Lodato? Here. Penichi? Here. Tiers? Here. Zimmerman? Here. We have quorum. Thank you. The purpose of this evening's meeting is to conduct the annual public hearing for the annual school district budget, present the budget to the community, adopt the budget, and approve additional resolutions that are on the agenda this evening. Okay. Right? Yes. It's up there. >> Hi, good evening everyone. Um, thank you for being here. Um, this budget cycle has been, uh, extremely difficult as
003I know you're all aware. Uh, but it's one thing for me to say that after 2 years of being a superintendent, it's another thing for Mr. Canella, um, to say that after 37 years. Uh, so I just want to take a moment and recognize, uh, his hard work to make, uh, this budget be what it is. Um, I feel good about this budget in the sense that, uh, we're in a better place than last year, but we're in a very tough situation as a school district, and Mr. Canella will go into further details about that. But I want to thank him, and also want to thank the Finance and Facilities Committee, um, for all their hard work and late nights, as well as the full board for their support during this process. Um, tonight, uh,
004we're going to go over the budget goals again so that we can re- remind the public of of where we started. Uh, I'll talk about the school experience and the impact of this year's uh, of next year's budget. Um, and then Mr. Canella's going to go into talking about the budget status, review of our expenditures, our revenues. He'll talk about banked cap. He'll recap our balances and reserves, talk about our capital projects, move on to the tax levy and its impact, and then, um, end with a call to action. So, that's the agenda for this evening's presentation. Um, so I'm just going to go back to October where we presented our budget goals, which I'm proud to say that we have stuck to. Um, we began the process months ago thinking about, um, all of
005our needs, uh, making sure that we're prioritizing, uh, the needs and requests that have the greatest impact on curriculum, instruction, assessment, and achievement. Uh, that's our foremost goal here. We also, um, of course, want to prioritize our overall district goals. Um, we want to develop athletic and co-curricular opportunities. Uh, specifically, we focused this year on David Brearley Middle School since we have um new space, uh new principal, and a new school dynamic with that. So, we want to make sure that this coming budget supported um that ongoing growth of that um part of our district. Uh we continue to commit ourselves to zero-based budgeting. Um we also want to make sure that we're providing our pre-K staffing um and servicing that four-year-old population, which we had um promised the community back when we passed the
006referendum. Uh so, we want to stick to that. And of course, um our final goal was to minimize our tax impact um by maximizing our tax dollars. Uh so, that's been an ongoing goal, and that's um a driver of many of the decisions that we make and and a lot of the discussions that we've had with the finance committee. Um so, those were our goals during this process. So, um I want to talk briefly about what this um budget does for our school experience. Um as I just said in our goals, you know, we are honoring our commitment to full-day four-year-old pre-K as a priority, so I'm really proud of that. Um it's not easy to do. Um it's it's a new program that just started in January. Um sorry, it's not a new program,
007but it's a new addition to that program. Um so, it's um great to see that we can continue moving forward in that regard, and I think that's going to be great um for our community long-term to be um receiving those students um at an early age. Um we've been able to maintain our instructional, co-curricular, and athletic programming currently in place in our district, um and that is uh no small feat. Uh it's very difficult to do that. You've probably heard headlines from other districts um with lots of significant cuts and such. We're not there right now. Um so, we're proud of that. Um this budget does afford a modest expansion of some middle school co-curricular programming, and I think that'll benefit our students. Um, so we're able to do that. We are shifting our resources
008a bit from supplies to personnel, so we've had to make some cuts in supplies in order to make sure that we, as best as possible, can maintain our personnel. Um, you know, finally, we were we're still working on um finding efficiencies in our schedule to um prioritize personnel. We're hoping to uh hire back a librarian um for our district, specifically at Harding, and we're looking at ways to um keep our classroom teachers at a at a stable place. Um, finally, of course, we um are maintaining uh we're ensuring that our district is compliant with certification, special education, the NJDOE and QSEC requirements. Um, so that's always an important component here. The impact of our budget. Um, and I said this at our last meeting and our our previous presentations regarding the budget, there remains an
009ongoing impact. Um, we can't shy away from the realities of that this is having our budget situation is having on our teaching staff and on our um students and schools. Um, last year, you know, we lost one administrative position and eight staffing positions. Um, that created um some larger class sizes in upper elementary, middle school, and high school. Those continue uh into the future, um which we don't like. Um, but that's where we are, so we're stable right now um because of those cuts from last year um and that those we're not able to grow is basically the the the gist of it. Um, similarly, the interventions that we want to be providing, we're providing, um but we could be I wish we were back where we were 2 years ago with our intervention program.
010Um, so we're providing interventions for students who need them, um but it's not as robust as we want it to be. Um, so that is an impact that is our teachers are experiencing and our students are experiencing. Um, finally the last bullet there says that there are no programmatic cuts as a result of the 2026-2027 school budget, um, but simultaneously there's little growth in programming, too. So, it's great that there's no cuts, but we're not able to grow in the way that we want to grow. Um, you know, with that said, um, Mr. Canella is going to take over from here, um, talk about a lot of the specifics and the nitty-gritty details. So, I'm going to turn it over to him and just thank him again for all of his hard work and he
011has a lot of details to share with you. So, Mr. Canella. Thank you, Mr. Davies. Uh, and I echo his, uh, statements regarding the hard work that went behind the I thank, uh, the finance chair, Mr. Leddy, and the the finance committee for their hard work over the months of January and February trying to piece this all together. I'd also like to thank Mr. Davies as well as the my fellow administrators who really put their heads together to tackle this, um, uh, undaunting task. Um, there is no really sugarcoating the budget. Um, it was a very difficult budget season. Uh, we entered the process facing what many have called the fiscal cliff at a point where rising fixed costs and declining revenues threatened the very core of our programs. Through, uh, disciplined, uh, uh, belt-tightening
012and strategic alignment, I'm pleased to report that we have averted the fiscal cliff for 2026-2027 school year. Uh, we have protected the student experience and maintained the integrity of our facilities, class size, and programs. However, it is my professional responsibility to be candid, uh, with the board and the community. We have reached a point, uh, where the how of our budget, the spreadsheets and the line items is being dictated by the why on this screen. A structural deficit isn't just about spending, it's about the fundamental mismatch between our obligation and our tools. You will see that we have reached this balanced state primarily through the significant use of fund balance. While this is a necessary bridge for this year, using one-time savings to cover recurring operational costs is a definition of the structural deficit. A
013structural deficit means our underlying expenses, mandated costs like contractual salaries, health care, utilities, special special education are growing faster than our static revenue streams. In short, our our recurring costs are outpacing our revenue. It's a a theme you'll hear throughout my presentation this evening. We are facing the expenditure gap where the costs we must pay are growing faster than the revenue we are allowed to collect. The big three, salaries, health care, special education, student mental health services, are all outpacing our static revenue streams. When personal costs rise by 8.35% revenue is capped at 2% before statutory adjustments, the gap grows wider every single year. Finally, I I want to address the why can't we be just a little more creative question. The reality is that we operate within a rigid framework of fixed constraints. Between
014state-mandated code compliance, the legal requirements of collective bargaining, our creative flexibility is severely restricted. We aren't choosing these costs, we're we are managing them within a set set of rules that often prioritize compliance over fiscal local control. Well, often the board and administration have very creative cutting-edge solutions to these problems, only to be thwarted by code compliance or collective bargaining restraints. We are working within a framework where the costs are fixed and our flexibility is restricted. This is why we say the current model is unsustainable. We have value engineered our operations to the limit. We are no longer facing a management problem, we're facing a structural framework problem that requires the strategic uh that requires strategic shifts, like shifting the election to April so we have that we've been discussing over the past several months
015and are going to be considering implementing later this evening. This slide represents the math that keeps board members, superintendents, and school business managers up at night. It illustrates the fundamental disconnect between the school the cost of doing business and our legal ability to fund it. The most one of the most important numbers on the screen is the 2.8 CPI or consumer price index. Uh that is the actual increase in the cost of goods and services we need to run our schools, everything from paper, technology, to cleaning supplies. However, we are governed by a 2% tax levy cap. Every year the inflation exceeds that cap. We are effectively being asked cut our uh buying power by the difference. We're essentially trying to solve a 2.8% problem with a 2% tool. Energy is one of the most
016largest non-personnel costs uh and it is notoriously volatile. Uh while we have made strides in solar and energy efficiency, we are still heavily impacted by oil price fluctuations. These aren't just market trends, uh they are line items that can swing by tens of thousands of dollars based on global events entirely outside of our control. We are still feeling the long tail of the supply chain disruptions. Procurement isn't isn't just more expensive, it's more complex. Shipping charges and rising costs of essential materials mean that the same dollars we spent 2 years ago simply don't go as far today. Finally, the most significant driver of our budget, the human capital, is governed by multi-year collective bargaining agreements. These contracts are essential for retaining high-quality teachers, but the math is unforgiving. When negotiated salary increments and mandated health
017benefit costs combine to grow at a rate significantly higher than 2%, we face a structural gap before a single student even enters the building. We are legally bound to honor these obligations, yet legally capped in how we can fund them. A collision of two state laws that leaves the local district caught in the middle. When you combine these four factors, you see why bike belt tightening eventually hits the wall. We have optimized every internal process we can. We are now at the mercy of the external economic reality that requires us to rethink our long-term funding strategy. Start to get into the meat of the revenues and expenditures. Our expenditure profile reflects the significant inflationary pressures facing the district. Fixed costs, specifically salaries, health benefits, um, property insurance and utilities continue to present substantial budgetary challenges.
018Uh, the cost of doing business is rising faster than our revenues, requiring us to prioritize immediate contractual mandated obligations over long-term capital and instructional investments. You can see here where where there are significant decreases in the in the budget in the areas of support services, technology, facility maintenance, operation of plant and upkeep of grounds, but then you can see the significant increases in the area of health benefits and regular instruction, which is basically salaries and special education. So, where do we stand today? To provide a complete and transparent fiscal picture, we are looking at the budget through two distinct lenses tonight. Uh the first uh chart presents our budget using adjusted figures. It offers the most direct apples-to-apples view of how successive reductions in state aid have physically impacted our district's spending power and operational
019capacity over time. The second chart adjusts the current year and prior year encumbrances. Um this alignment is not only a requirement for our state submission, but also ensures our reporting remains consistent with generally accepted generally accepted accounting principles or GAAP. This view reflects our actual legal and financial commitments as they move across fiscal years. By reviewing both, we can see the raw impact of aid loss while maintaining the fiscal rigor required by state oversight. So, I have this this slide I've always found very interesting. It's the programmatic breakdown of of the budget. Uh it serves as a budget foot footprint providing a transparent map of exactly where your tax dollars are committed. It illustrates that while more than half of our budget is dedicated to our instructional core, a significant portion is driven by mandated
020services and fixed operational costs that leave very little room for discretionary spending. The two largest slices represent regular education at Harding and Briarcliff. This is the product of the district, classroom teachers, textbooks, the direct instruction. While it's the largest part of the budget, it's also where we are most vulnerable to inflation as these are the primary human capital costs. Then there's mandated services such as special education which is our second largest single expense. This is important for the public to understand that this is a mandated cost. We are are legally legally and ethically bound to provide these services. As compliance requirements grow, this slice of the pie naturally expands often at the expense of other discretionary areas. The employee benefits and insurance piece um is a significant wedge. This segment represents the increase in our
021health care uh spike that we had this year. Uh and an expense that now consumes nearly 1/6 of every dollar we spend. Also included in this category are essential liability and safety protections including workers compensation, property and casualty, errors and omission, and cyber liability insurance. As discussed, these premiums are subject to the same aggressive market pressures as our health care costs. Undistributed programs are the are the hidden gears behind the budget. They include the building maintenance, technology, leases, debt service, administration, and utilities. These costs are highly sensitive to energy and supply chain issues that we talked about earlier. Uh the interscholastics athletics, I'm going to put a plug in for it this year. Um Uh uh it's often one of the most scrutinized parts of the budget. Um because people consider it an extra, but
022it's only 2.2.16% of the budget. Um And they represent one of the highest returns on investment for student engagement and school culture. Uh at just over 2% of the budget, our athletic programs are one of the most efficient tools we have for student retention and character building. While some may see this as discretionary expense, we view it as a core component of the student experience for several reasons. Participation and belonging. About 50% of our student pop uh student body participates in at least one sport. For many students, this connection to the school is what drives their academic performance and uh attendance. Athletics funds more than just jerseys and referees. They cover the coaching stipends, transportation to away games, the safety equipment necessary to meet state compliance for student athletes. And finally, community identity. Really, athletics
023are a primary point of pride and connection for the broader community. These programs foster the leadership, discipline, and teamwork skills that aren't always captured in a standardized test score, but are vital to post-graduation success. In short, we are investing roughly 2 cents in every dollar to provide hundreds of students with a structured, safe, and competitive environment that keeps them engaged with their education. Moving on to labor costs, well, uh last year's budget um uh as Mr. uh Davies uh indicated, was defined by a forced decrease uh in spending and staff reductions due to the the the the loss of state aid and the uh overall budget. This year's narrative is one of shifting priorities to absorb double-digit increases in health care and rising cost of special education, we are forced to make difficult reductions in
024other critical areas. Uh this includes scaling back on allocations for facilities maintenance, teaching supplies, and textbook renewals. Uh if we look at the core of our budget, our people and their benefits, the math of the of our structural deficit deficit becomes unavoidable. Across just these three categories, salaries, health benefits, and pensions, our costs are increasing over $2 million this year alone. That isn't a 8.35% increase in our um largest expenditure bucket. We are seeing a 5.5% increase in salaries and stipends. Uh it is important to understand that this isn't solely about right raises. It represents the cost of uh of of the high-quality educators our community demands and the contractual obligations required to keep our schools running. Furthermore, additional staff were required this year to comply with state-mandated special education class uh size limits. A
025significant portion of the stipend increase is dedicated to expanding uh the activities at the middle school as uh Mr. uh Davies um stated was one of our budget goals. Uh this fulfills the key commitment made by the board to establish a distinct middle school identity. By investing in these clubs and programs, we are fostering the same sense of school pride and student participation that has been so successful at the high school level. Uh and finally, health care, uh pension, social security. Um this is perhaps the most critical figure on the screen. Our employee benefits costs are projected to jump about 22%. It's a market-driven force entirely outside of the board's control, representing a $960,000 increase that must be funded before a single dollar is allocated towards the new textbooks or technology upgrades. To mitigate this,
026we have formally marketed our full insurance portfolio. We're currently waiting final analysis from our brokers to determine if a carrier switch is necessary. It is important to note that any change in providers must strictly comply with labor relations requirements to ensure coverage remains equal to or better than our current uh programs. Uh When our primary expenses grow by 8.35% but the state limits our primary revenue growth to percent, we are effectively at being asked to do more with less every single year. This table is the clearest evidence of why our current funding model is unsustainable and why we must look towards structural changes such as the April election to protect the quality of our district. Now that we've examined the where the money goes, let's look at the how we get to fund those commitments.
027This slide outlines our revenue strategy through three primary lenses, utilization of allowable statutory adjustments to the tax levy, our strategic use of reserves to maintain stability, and the current status of our debt service as we look forward look toward future relief. So the focus number one is on the tax levy adjustment. The proposed current expense tax levy is 3.75% while this exceeds the standard 2% cap, it is important to note that this is a compliant and allowable increase. In our March 25th presentation, we went into detail about the specific statutory exceptions such as enrollment adjustments and health care adjustments that are permit this adjustment to meet our operational needs. Focus number two is the strategic use of reserves. We are utilizing district reserve to bridge current funding gaps. However, this is a finite resource. I
028will provide a detailed analysis of how this deployment impacts our immediate fiscal health. And more importantly, what it means for our long-term budgetary sustainability. And then finally, the focus the third focus I want to focus on is the debt service stability. Debt service tax levy has reached a point of stabilization after several years of infusion of capital reserves and tax increases. We anticipate the tax impact to remain relatively flat until the 29-30 school fiscal year, at which point the 2016 bond is scheduled to expire. At that point, that will provide future structural relief or fiscal opportunities to the board. Let's talk a little bit about state aid. While our overall state aid has increased, which is undeniably positive, a closer look at the distribution reveals a concerning concerning some concerning trends. My primary concern lies
029with the shift away from categorical aids to in favor of equalization aid. It's important to remember the distinction. Equalization aid is driven by community wealth and property values, whereas categorical aid is tied directly to student demographics and specific needs. The state's decision to reduce special education funding by $803,000 is particularly staggering when our total district commitment to special education exceeds $9 million. Forget, that was a statement this special education is a state mandate. That term state mandate, state paid, just doesn't just doesn't work here. The current funding formula is widely acknowledged as flawed. While the state may recognize the need for a systemic overhaul, it remains to be seen if the governor and the legislature possess the fiscal fortitude to prioritize student needs over zip codes. We will continue to advocate for a formula that
030reflects the actual cost of educating our diverse student population. During our March 25th meeting, the board moved to submit the tentative budget to the executive county county superintendent. At that point, we explored the foundational technical metrics of the budget, specifically the minimum tax levy, the tax levy cap calculation and district allocations. I won't get get into that tonight, but it is important to note that Kenilworth remains significantly below the adequacy target, meaning the state's own funding own formula admits we are spending less than what is required to provide a thorough and efficient education. We will now dive deeper into the remaining technical aspects to provide a complete and transparent view of our fiscal standing. To understand our revenue flexibility, we could look at the bank cap. In short, bank cap is not real money or
031cash reserves. Rather, it is the legal authority to raise the tax levy above the standard 2% limit without a separate ballot proposal. Under New Jersey administrative code, a district can bank any unused taxing authority and carry it forward for use in any of the next three budget cycles. However, this is only permissible if the district has follow fully exhausted all other eligible statutory spending authority. So, what are the key takeaways for our district? Current bank cap due to the increase in health care cap adjustment, we were able to generate $459,000 in bank cap. Future outlook, short of a monumental shift in state aid distribution, I do not anticipate the district being in a position to generate significant bank cap in the foreseeable future. And then authority versus assets. It's critical to distinguish the bank cap
032bank cap from uh It's critical to distinguish bank cap from free balance or surplus. Bank cap is the right to ask for more tax revenue. Surplus is actual cash on hand from previous years. We will review surplus in the next section. Our financial health is not just measured by our annual budget, but our recapitulation of balances. It's important to understand that these balances are not a single un undifferentiated pool of cash. Instead, they are categorized to specific buckets, each governed by strict statutory requirements. Each category is defined by three key regulatory guardrails. Accumulation. How the funds are generated, example through unspent appropriations or specific board resolution. Number two, maximum thresholds. The state mandates caps on how much we can hold in certain reserves, such as capital reserve limited to the the district's long-range facility plan
033or emergency reserve set at a specific dollar amount. And then finally, usage restrictions. The law dictates exactly what these funds can be spent on and when, often requiring specific board action or even state approval to release them. In the following slides, we will break down our current standing in capital reserves, man-made reserves, and unassigned surplus so you can see exactly how we are positioned in both emergency needs and long-term stability. The figures we are presenting tonight are based on our most current internal projections while we await the final certification of the 2024-2025 audit, which has been delayed due to unexpected health challenges faced by our external auditor. We remain currently confident in the conservative nature of these estimates. Furthermore, the finance and facility committee has already met to discuss and establish contingencies to ensure fiscal
034stability regardless of the final certificate certification timing. The first two categories to review are our unexpected unassigned free balance, which is surplus, and our restricted legal reserve, which is excess surplus. Ideally, districts ideally a district should not rely on these funds to cover recurring operational costs. Surpluses are savings account intended for unforeseen emergencies and fiscal stability. However, to maintain our current instructional programs for one more year, we are proposing to appropriate $2.5 million to support that this budget. Hopefully, the state will come through for us. While this is a significant increase from our current levels, it is necessary to move to to bridge the gap in this fiscal cycle. Using reserves to supplement recurring expenses is a high-risk fiscal strategy. It creates a structural defect deficit, meaning we are funding outgoing costs with one-time revenue.
035Once these funds are spent, we do not they do not automatically refill. If we continue to rely on this balance the budget balance the budget, we face the fiscal cliff that we've been talking about. Where our reserves are exhausted, but our expenses remain. This path is unsustainable long-term and underscores the urgent need for a more equitable state aid formula. This will be our challenge for the 2027-2028 budget. So, maintenance reserve, we are appropriating $73,000 for specific projects which I will review in a minute. And we will have a remaining balance in maintenance reserve of $277,003. Capital reserve, we're not appropriating anything this year and it remains at $234,711. We have made monumental strides over the past several years in the in the area of capital improvements and we are in very good shape with regards
036to that. So, so, hopefully at some point we'll be able to start putting money back into that, but right now our capital and our facilities are in excellent shape. And then finally, emergency reserve, we are not appropriating anything into this year's budget and it it remains at $250,000. And someone asked me the other day, what's the purpose of emergency reserve? We made a decision quite a few years ago to to to fund the emergency reserve, which is at at its max of $250,000 for the specific purpose of in a year like next year where we're really tight and three students move in with extraordinary needs, out-of-district placements or something like that, and we can't find it within the operating budget, that's what that emergency would be reserve would be. It's very restrictive, but in those
037particular cases, the commissioner has allowed the use of emergency reserve to be used. So, specifically the capital projects that we are going to be taking a look at through that $73,000 of maintenance reserve are classroom renovations including the STEM renovation STEM room renovation over at Harding. Uh and then the resurfacing of the the gym floors at both buildings for a total of $73,000. Uh tax levy the calculating tax levy is a is relatively simple calculation. Getting to that A figure there, that 38,425,000 that's the challenge. But once that's established um it's a relatively simple calculation. Um you take your total budget and then you have these offsets. So, in our particular case, we're appropriating $2.5 million from our free balance both excess surplus and regular surplus. We're drawing $73,000 from maintenance reserve. Uh we have
038revenue from Winfield which is through our send receive relationship. Um then we have miscellaneous revenues which are interest revenues um and interest revenues and rental of facilities. Uh and then our state aid uh federal aid and then finally debt services backed out of that. So, you take those total offsets of $14,181,000 subtract it from the 38,425,000 and you come up with our tax levy of 24,243,441. This represents This slide represents the bottom line for our local taxpayers. It is where the operational needs we've discussed meet the actual tax bill. When presenting this, it's important distinguish between current expense, the cost to run the schools, and debt service, the cost of past building projects. This table breaks down the two components that make up the total tax levy. So, the current expense is increasing by 3.75%
039as we discussed earlier, while the state cap is at 2%. The law allows for specific adjustments primarily to account for the massive increase in our healthcare costs. This 3.75% increase is what allows us to maintain our current programs and staff staff without deep cuts. It represents a 876,266 dollar increase, which as you can as you as you saw in our labor cost slide earlier, it's actually less than 8 960,000 dollar jump in healthcare costs alone. Essentially, this levy adjustment is a direct a direct pass-through to cover mandated benefits. Second category is debt service tax levy, which is going down. There is a small bit of good news here in our long-term obligations. Our debt service levy is decreasing decreasing by about 6,500 dollars. This is due to the stabilization of our our bond payments and
040the schedule of debt. As we noted earlier, we expect this line to remain relatively flat until 2029 when the 2016 bonds expire, which will eventually provide more significant relief to the taxpayers. So, the overall tax impact here is 3.3 6% when you combine those two figures the current expense levy and the debt service levy. So, in a year where inflation is at 2.8% and our health care costs are in excess of two 22% a total tax levy of 3.3% is the result of exhaustive value engineering and the strategic use of 2.5 million dollars in reserves. We're asking for this increase not to expand but to sustain ensuring that the quality of education in the district remains at the level our community expects. So, the tax impact the proposed budget reflects a modest adjustment for the
041average homeowner primarily driven by the operational costs while being partially offset by the reduction of debt obligations based on average home assessed at 184,888. Remember, assessed value does not equal market value, okay? It's a big typically there is a big difference. Um and I believe you can go around in the the the borough's website to find out what your assessed value is. Okay. Um total school tax so the total annual tax for the average household will be $6,356 represents an overall increase a net increase of $206.77 per year. So, the resolution that the board will be considering later this evening it is um using no bank cap generating 405,704 for the use of for potential use in 27 28 or the two years after that. It's approving withdrawals from maintenance reserve for the projects that
042we outlined. It approves the capital projects that we discussed. And then finally, it sets the tax levy um as outlined here. So, the there's the two pieces of the tax levy. Um and you can see that there. Okay? If we rely solely on the 2% tax levy cap uh while our mandated costs grow at nearly double that rate, uh we face the uh future of diminishing returns. First, we will see program uh contraction. We take great pride in our extracurricular and electives, but these are the first things threatened when the budget is squeezed. Second, we will see capacity strains. Efficiency eventually becomes overcrowding, leading to growing class sizes and a direct hit to student support. Ultimately, we risk an overall decline in quality. The standard of excellence this community expects cannot be maintained on a
043structural deficit. So, the three pillars of long-term survival. To avert this, we aren't just identifying problems. We are proposing three specific pillars for a sustainable future. The first pillar is local control. Moving the election to April isn't about asking the community to carry the load alone. It's about providing us the a local safety net. Under the current system, Trenton sets a 2% cap that doesn't account for 22% health care spikes. By moving to April, we stop letting outsiders decide if our program survive, and we put the power back where it belongs in the hands of the Kenilworth residents. The second pillar is state advocacy. But local efforts are only half the battle. We must demand a return on the investment our residents already make. Uh Kenilworth taxpayers send millions in income and sales taxes to
044Trenton every year. Yet we see a fraction of that return in the form of aid. This is not just a budget issue, it is a fairness issue. We need to be relentless in our advocacy to ensure that the Kenilworth is no longer treated as a donor community. Used to solve the district district's problems to used to solve other districts' problems while our students are squeezed. When we talk about state advocacy, we're talking about our money. Kenilworth residents work hard and pay significant state income taxes and sales taxes. Currently, massive portions of that money stay in Trenton to fund other districts while our aid remains stagnant or declines. We aren't asking for a handout. We aren't asking We are just asking for our fair share. We are asking that the money Kenilworth sends to the state
045comes back to Kenilworth to support the children and the infrastructure of this borough. The final pillar is the mandate relief. We need a statutory adjustment that recognizes the reality of special education costs. These are essential life-changing services, but uh they are driven by federal and state mandates. They should not be restricted by the same 2% operational cap as general supplies and utilities. We need the state to fund this fund what they mandate. As the quote often attributed to Winston Churchill goes, "Gentlemen, we have run out of money. Now we must think." Tonight, we're doing more than thinking. We're acting. We're proposing a path that combines local empowerment with state advocacy. The April election is our immediate shield. We celebrate as we celebrate the 250th anniversary of the American Revolution, we remember that our nation was
046founded on a simple, powerful principle, the right to have a say in what and how we spend our taxes. By moving our election back to April, we restore that democratic right. We move away from a system where our budget is dictated by a formula in Trenton and towards a process where Kenilworth residents have the final word. It allows us to protect our standard of excellence right here at home through representation. Simultaneously, our commitment to state aid reform is a long-term sword. We will continue to fight in Trenton until the tax dollars leaving this borough finally start coming back to support the children of this borough. Currently, Kenilworth residents are enduring a modern form of taxation without fair representation. Our residents work hard and contribute their full share to the state, yet the formula redirects these
047dollars elsewhere while our our own classrooms are squeezed. We are no longer content to be a donor community. We will fight for a fairer apportionment because the spirit of the revolution wasn't just about the burden of tax. It was about the power of the people to decide their own future. This budget buys us time, but our strategic plan buys us the future. A balanced budget is a victory tonight, but a sustainable, fair funding model is our mission for tomorrow. Thank you. Are there any questions? Yeah, I When we talk about the the moving of the election from November back to April, and I say back to because that's what we once swore. Mhm. Um can we have some sort of clarification for the public in in plain terms, what exactly goes into their hands by
048that vote? In the past, when we were the April election, public came out and voted for the budget, period. Mhm. And the budget either passed or failed. But we had an actual an extra referendum, they voted on that additionally, and it either passed or failed. And if the budget failed, we wound up with that cut situation and back and forth with mayor and council and the board trying to figure out what was going to happen. So, >> if we go back to it now, if I'm not incorrect, it's not exactly that same situation. It's different. Correct. So, the the state modified that law. That's the way it was up until just a couple years ago. Um the entire budget was up for if you move back to the April uh election um In the past,
049time frame, the whole budget was up. Now, it's only anything that is in excess of the 2% cap with adjustments. So, let's take this year, for example. If we were to present this budget if this budget was being this is next April, and this is what we presented, there would be one vote on the ballot in April. It would just be for for candidates. Board members, that's it. Because this budget is not over the cap with the the adjustments. Right. If, for example, we wanted to go beyond that and we wanted to say we want to reduce class size in first grade by hiring one more teacher and we want to expand the pre-K uh uh program even further um and we want to hire two teachers there, so we want three more teachers, we
050put that as a separate question and that is defeated, that's it. It's not considered. We can't even We would not even be allowed to do it if we found the money. Just like the old way. Just like the old way, right. So, it's not the budget portion of it. >> So, so this >> only be voting on excess. >> This budget wouldn't be in jeopardy if it was removed next year. Only what is in excess of the cap. Okay. Okay? And some of you get to stay an extra couple months. I don't know. According to that thing, it's like everybody's staying a couple extra months. Yep. Any other questions? >> I just had a comment for you. I'm happy that you brought up athletics. I think that in this community, all of us who are
051parents here, all of our children are very involved in athletics or extracurriculars. Um I I'd really, really like to see um more of an effort put forth to use some of our new space that we have um you know, um to generate some revenue. Some of our surrounding districts do that and they do a really good job of it. For example, Union I think brings in like 3 to 9 million a year. I get that they're a lot bigger than us, so that's not exactly comparable, but there's an opportunity there And and I think that when you say we need to be creative, we do. Um that's not that's not restricted. So, um you know, we've discussed it, um but I I just wanted to say it publicly that there are some opportunities that we
052can look at. Um maybe even some shared services we can think about with our bureau um that may help us out long-term. And and I I do think that creativity come can come in many forms outside of these restrictive measures you've discussed. You've done a really good job, Vince. I congratulate you. Um you know, I know you're retiring, and this is not an easy job, so big shoes to fill, but I I I'm glad you brought that up because it's something that this town really really relies on. Yeah, I I bureau specifically cuz I've been paying attention to what other districts are doing cuz a lot of these districts are facing town I live in uh is looking at cutting potentially 70 teachers. Um and you know, they're now targeting athletics uh and the different
053extracurricular activities. Uh and I get it. I mean, that's that's usually I just wanted to put a plug in how important it is. Uh regarding shared services, we have a great relationship with our bureau. Uh we do a lot of shared services with them uh whether it be um um first of all, we're basically the rec department. I mean, our facilities are are the Kenilworth rec. I mean, they they don't have, you know, that that that's basically it. Um so, that's that's what we're giving to them. They're providing us garbage pick up and salt and things like that, and sometimes we'll go down and clean bureau halls floors. So, we do a lot of shared services with with that. Um Uh and then the revenue, it's, you know, we took a took a hiatus last
054year because our auditoriums were being uh renovated, but uh Mr. Connelly has made up some aggressive uh moves, and we're a lot of those weekends we're renting that facility. Mr. Amato knows that. Um you know, so we're bringing in some decent amount of revenue and now we're looking at uh um some equity issues within the fields and we're generating some some revenue there. Small amounts because they're more student focused programs. Uh but um there is some revenue coming from there. But if you have any other ideas, that'd be great. I got to got to take a look what Union does to generate that type of money. That's that's that's great. Are we like a very popular or like centrally located place cuz I know we have a ton of cheer competitions, dance recitals, like they're
055always held here. People are coming from all over the state. So like what attracts Kenilworth and like how can we get it? >> it I think it To be honest with you, I think it was our facilities. I mean, our facilities are I mean, people always liked our facilities. I mean, We were air-conditioned. Yeah, air-conditioned auditorium, yeah. The cheering, I think that was a lot to do with Miss McGowan who was our cheer coach. She brought a lot of that stuff stuff here and then people would see it and they said, "Okay, let's let's piggyback off of that." So I think that had a lot to do with it. Um but you're right, there's a lot of I mean, Irish dance, we have bodybuilders here, we have fusion dance, we have lots lots of lot
056lots of different opportunities. >> dancing on that stage. But we also only have like one or two fields, right? It's not like other towns where they have multiple football fields and multiple softball fields and etc. So and we got to compete with the rec also. We got to make sure our kids get on the fields too. So you know how much issues there are with scheduling rec soccer and and football and everything else. So it's to squeeze a lot of other stuff into the town it gets a little difficult at times. >> we also have obligate We also have our own obligations so we can't rent the facilities all the time, you know. So we're not going to rent the facilities and kick Mr. Weinstein in the our crew out of out of out of
057doing their play or the fall play next year we're going to be having a middle school play so that's going to be two two middle school plays two middle school plays so now you're going to set up having two opportunities you have four spaces being used so that makes it a challenge as well. I I think that's also an opportunity for revenue our shows um I don't disagree with you. Yeah some shows some some other places really do a really good job of bulking up the >> advertising Yes yes and we can we can do a much better job >> I've always having Jeremy knows that I've always advocated that we don't do enough advertising I mean there's there's there's a former Thespian myself um there's nothing like there's nothing like playing to a full
058crowd I mean you know Right. I mean it it's it's it's you just you just live off that energy so so sometimes when you see some of the the crowds it's like come on you know you really want that place packed so so it's important. I was just happy you didn't go into your Grease routine. >> That's it at least they did. Grease is the word. Okay any other questions? Okay. Thank you. Thank you. Mr. Ladato would you like to do a committee report? Well um I think Mr. Gonnella and Jeremy just kind of went through it with the budget you know I just want to thank you know the finance committee Mr. Fine Mr. Dave Mr. Havether um you know a lot of meetings since December a lot of effort um we were I
059think everybody was prepared we always asked the tough questions not only of the superintendent and the business administrator but all the administrators that went up here um you know we start at a zero budget it's not I know we've said this a hundred times but we don't start from last year's budget and layer on top of it we start at zero which makes things a lot tougher um to go over it dollar by dollar. So saying that, the only thing I um you know, the the facilities committee and the finance committee um recommend that we approve the budget. Um there's also three three more um resolutions. Um resolution two is to move the school elections April. Um three is the appointment of the project engineer for the fire alarm system. And four again is the
060worst contract for the fire alarm installation. So other than that, that's all I have for my report. And I I'd just like to reiterate that we did spend a lot of hours uh putting this budget together and there were no shortcuts taken. We examined everything and tried to squeeze as much juice from a very dry piece of fruit that we could. Um so you know, the the the citizens of Canaseraga should know that this is the best effort to keep the school functioning. Give Mr. Davies the uh the ability to lead the school and continue to make it grow. So um you know, I second Mr. Bedoudi's uh statement to approve the budget and look forward to the future. So. Thank you. Um Mr. Genao, would you mind just giving a brief description of the
061fire alarm chunk resolutions that we're approving tonight cuz that's a significant chunk of change. Yeah. Um so Burley's system is significantly uh challenging uh in in that um What am I to say here? It's a little older system. Um so uh and it's constantly going into trouble uh and costing us quite a bit in maintenance. So um you know, these are basically electricians who come in and do this this type of work. So, it's not it's not cheap. Um So, it's a full replacement. So, there's there's a new system in the new addition. And this will complement the the system, so it integrates it completely. What we decided to do is not go through our engineer to design it, but use the company that maintains our system currently to develop the specifications. I'm comfortable with
062that. Number one, it's through a cooperative purchasing agreement through a data. So, the pricing is is basically predetermined. But it's also good to know that the the the company that's familiar with our system, they didn't initially install it. It's a but they're just they've just been maintaining it, is going to be now upgrading it. So, they're very familiar with the system. There's a lot of layers of I feel protection in the way we're doing it. There's local code officials who are required to oversee this process. But then we're also hiring this other company to oversee it as well. What I basically call a commissioning type of thing. So, they're going to take a look at the the plans. Their responsibility is to take a look at the plans, review them, consult with the the contractor,
063make adjustments if they feel it's necessary, and then they're going to be on site to work with the local code officials, and ensure that the product is installed the way specifications are. Yeah, the other thing I was hoping you would comment on is that this is a part of our referendum. Yes. Yes. Yeah, the funding. Right. Funding part of it is what I was most interested in. Oh, okay. Yes. Yes. Um this may be a silly question, but is the So, briefly, this is uh never mind. It says middle and high school. But the middle school has the new one already installed or whatever. >> Correct. Never had any um issues with having the two different when there's been security drills or if it has malfunctioned like something's happened. I've never heard anything about that.
064The only issues are turning the alarm off and getting the kids back in the building after the drill. The the system operates effectively to warn and get everyone out of the building. It's the resetting it and silencing the alarm and and getting the the system out of trouble. That's where the problems lie. Um so if you're a teacher in the room, you know that sometimes you're standing outside with your students for extra long because people are inside trying to navigate this double system. One pretty old, one brand new. They're both talking to each other and that that's part of what needs to get And like whenever you have security drills or whatever, it pertains to both. They both go outside. >> operates as one security >> Yes. Thank you. Thank you. Anyone have any questions
065before we open up the meeting to the public? Okay. We'll first do the isolate it to just the budget cuz this is technically a public hearing. Uh and then we'll open it up for general comments. Public comment will now be accepted. The board sets the limit to the public to speak at the board meeting to 5 minutes per person unless prior permission has been been granted by the board to extend time pursuant to Board of Education Bylaw 0167. Please be reminded that while members of the public may speak on personal matters during public comment, the Board of Education is legally prohibited from discussing individual personnel issues in public session unless the employee is uh issue issue has requested a public discussion. The board role board's role is to set policy, ensure effective operation of our
066schools. While personnel recommendations are the exclusive responsibility of the superintendent of schools, the board reviews and acts on on these recommendations in accordance with state statute and district policy, but does not initiate or manage individual staffing decisions. For the record, please include your name and address prior to making a comment. And at this point, we will be calling for public comment on the budget only. So, that's the resolution of the first resolution. So, is there a motion to to So moved. Second. Made by Mr. Davis, seconded by Mrs. Tiers. All in those in favor? Aye. Okay. Any opposed? Okay. We'll close session for not close session, public comment for the budget. Are there any questions regarding the budget? No. Okay. We'll now transition to general public comments. Yep. Okay. Motion to close. No the motions?
067Second. Do you need to close and reopen? >> Yeah. Calling Seconded by David. Okay. Is there a motion to open it up for regular comments? >> Made by Nancy, seconded by Second. Mr. David. Okay. All those in favor? Aye. Okay. Any opposed? Motion carries. This is for general public comments. Ready? Okay. Good evening. Carmen Buca, 238 North 18th Street, Kenilworth. Uh Mr. uh Canela, congratulations on your retirement. >> Thank you. Next year's not going to be pretty. No. You'll save a lot of gray hairs. Uh I just wanted to compliment Mr. Davies. Thank you for returning my call promptly and uh answering my questions. I'm sorry I kept going back and forth, and I'm a trust but verify type of guy. Um I congratulate you all on this budget. $207 a year is a cup
068of coffee maybe once a week or once a month. Uh I am running for Congress and one of the things that I say all the time is the fact that our what we do today is our children's legacy. We can't fail them. It upsets me that we have to fight on a constant basis to get money for these children to whether be have extracurricular activities. We should not be fighting with the state. The state just should be giving us what we need and what we deserve. Laying this all into taxpayers Unfortunately, last night I didn't get to go to a meeting but it kind of bothers me. I got a bunch of messages from people, "Oh, where's no there's no transparency going on." Nobody knows anything that's going on and I said to one individual,
069"Well, you can blame our elected officials all you want but you have to take some ownership. There was a over 100 people at a meeting last night so concerned about what's happening at Merck but you and you're talking about your kids and the detriment to their to the children of the future and this room is empty. It's upsetting especially when I hear it and I'm a straight shooter and I'm going to go back and I'm going to say with all due respect you had an opportunity to see this budget this evening. It should have been done tonight. You should have been here tonight if you're so worried about the future of your children. My only concern about the April budget is the fact that uh it may be a small question next year to increase
070teachers or to increase this or to increase that. Based on what you're showing tonight, we could be 4 8 12 15 20% behind come year 2028. Uh how do you feel like that's going to benefit the people? Now you're going and saying, "Well, this year we may need a $207 increase, but next year we may need 500. Following year we may need 1,000." So, I hope uh and pray that you guys are truly fighting the state to say, "I'm done paying for other people and digging into the people of Kenilworth." Our taxes are skyrocketing and it's not fair to the homeowner that the state is not stepping up to the plate. With that, thank you very much for your time and thank you very much for eating. And congratulations on a very, very hard budget.
071Anyone else? No. Yeah. Motion to close. Make a motion to close the public portion of the meeting. I think I think you have somebody else. Hello. My name is Nicholas Vilacas. I live on 323 Maplewood Avenue. I am a senior here at David Brearley. The reason why I am here tonight is because I wanted to make the town aware of some news I heard today. The administration has made a decision that I feel is going to affect the students negatively next year and most likely years to come. The decision has been made to cut a full-time physical education teacher. I have witnessed the class sizes firsthand and what large class sizes can do to not only the dynamic of the class, but the safety of the students. We already have classes that reach We already
072have class sizes that reach over 35 students. What will these classes look like now? I have a little sister in the school system as well as I hope she gets to enjoy the same type of engaging, safe PE classes as I did. When she grows up, I'm not sure if cutting teachers will give her that experience. Thank you for your time. Thank you. Anyone else? Anyone else? Okay. Make a motion to close the public portion of the meeting. Second. Motion made by Mr. Davis, seconded by Mrs. Tiers. All those in favor? Aye. Aye. Opposed? Eyes have it. Motion carried. Okay. Yes. Okay. Uh there are four resolutions on this evening's agenda. Do any of these need to be voted on separately? No. Okay. So, resolutions 1 through 4 on the agenda. Feiner? Yes. Cracolici? >>
073Yes. Davis? Yes. Hayden? >> Here. Yes. Roddy? Yes. Tiers? Yes. Zimmerman? Yes. Finicchiaro? Yes. Motions carried unanimously. Thank you. Uh do we need to go into executive session? We do not. Okay. Can I have a motion to adjourn? So moved. Second. Second. Motion made by Mr. Davis, seconded by Mrs. Tiers. All those in favor? Aye. Aye. Opposed? Eyes have it. Motion carried. We're now adjourned. Thank you very much. >> Thank you everyone. Thank you. Thank you. Goodnight. You too.