District could access state aid available only through referendum
The Clearview district has an opportunity to make priority improvements while keeping the tax rate at the same level. That’s $59 million in projects with no change to the tax rate. How can Clearview do that?
The last major investment in our schools will be paid off in 2023. With voter approval this November, tax payments for this next-generation investment would pick up where those payments left off.
Bonds would be issued after construction begins and the new principal payments would not start until after the old debt is paid off. That means these new improvements can be made while keeping the tax rate at the same level.
Proposed projects maximize eligibility for state aid
Certain types of projects are eligible for state aid when approved through a bond referendum, and the Clearview Board of Education has focused on them. For this proposal, state aid would cover up to 40 percent of the total $59 million in project costs. The district will contribute additional funds from capital reserve savings toward debt service. The remaining cost to local taxpayers fits within the current property tax rate.
A cost-cutting opportunity
New Jersey’s program called ESIP, short for Energy Savings Improvement Program, allows districts to make energy-efficient improvements based on the amount of future savings.
Clearview strategically considered what projects could be covered by ESIP, and did not include them in the referendum. However, ESIP does not pay for some necessary support work, and that's where the referendum comes into play.
ESIP funding would cover projects for lighting fixture/lighting control upgrades, HVAC controls, solar projects and boiler plant and chiller plant replacement/upgrades. The referendum would fund the support projects that are not covered: electrical distribution upgrades for HVAC, roofing and structural upgrades, and interior ceiling work.
ESIP is another major factor -- along with a flat tax rate and state aid -- that make this a good time for a next-generation investment in Clearview schools.
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CLEARVIEW REGIONAL HIGH SCHOOL DISTRICT | 625 BREAKNECK ROAD | MULLICA HILL, NJ 08062