During the meeting, Mr. Ray Sarinelli from the auditing firm Nav Nvoccia presented the 2025 audit, delivering an overview of Nutley’s financial health. Sarinelli highlighted the district’s income statement, noting that local tax revenue, totaling $65.4 million, constituted the largest share of local revenues. Additional funding came from tuition, miscellaneous revenue, and interest earned. The district received increased extraordinary aid, reflecting effective budgeting and proper completion of funding applications. These efforts resulted in a significant growth of the fund balance, rising from $3,380,000 to $5,679,000. However, Sarinelli pointed out that despite this improvement, the fund balance remains below historical levels, which previously ranged from $7 to $8 million before the pandemic.

Sarinelli emphasized that while the district’s financial position has improved, it still falls short of adequate levels, creating stress on future budgets. He noted several cost-saving measures the district has implemented, such as participation in insurance pools and joint agreements for transportation and purchasing. However, he cautioned against overspending, especially given increasing demands for new programs and activities. Addressing upcoming challenges, Sarinelli highlighted the state aid loan payments and a constrained 2% tax levy increase, which fails to cover rising costs, particularly in health benefits. The expected increase in health benefit costs is estimated at $3.3 million, while revenue can only rise by $1.3 million, creating a $2 million financial gap as the budget cycle begins.

The audit also touched upon compliance issues, with one repeat recommendation from the previous year concerning national cooperative purchasing agreements. Although the administration addressed most previous audit findings, a minor issue persisted where the award of a cooperative agreement was not published, as required. Additionally, discrepancies in payroll records were noted, with the district taking steps to rectify these issues for the 2025-2026 school year. The audit stressed the importance of using position control rosters to prevent budget overspending and ensure compliance.

A further recommendation focused on the preschool education budget, where revisions and transfers were made without necessary approvals, highlighting the need for compliance with statutory guidance. The audit reiterated the importance of advertising contract awards related to national cooperative purchasing agreements to comply with public school contracts law.

The meeting also included significant acknowledgments for both student achievements and staff efforts. Notably, Nutley High School hosted assemblies on mental health during the holidays, featuring guest speakers from Nutley Family Services Bureau and Seton Hall University. Recognition was given to two students for their acceptance into Princeton University.

Among the community initiatives discussed, Dr. Al Pakor addressed the board regarding a project to renovate High Five Hill. Pakor noted the absence of a necessary survey for grant applications, seeking the board’s assistance in obtaining the required information.

The meeting was marked by farewells to Charlie Kazinski, who concluded his three-decade service on the board. Members expressed gratitude for his dedication and community service, sharing personal anecdotes and highlighting his impact on the district. Kazinski himself reflected on his tenure, recounting initiatives like the introduction of girls’ soccer and the district’s evolution over the years. His legacy was celebrated, with members acknowledging his leadership and the trust placed in him by the community.