A state program awards funding only to districts where voters approved a referendum for bond borrowing. Funding is provided every year, as if the state were helping to make the loan payments. The tax impact already factors in the state aid, reflecting the amount to be paid through local property taxes.

Municipalities use assessed values for the purpose of tax levies. They are different, and usually less, than market values that can be used to guess a home’s value for sale. In Hillsdale, the mathematical average of assessed values for homes is $476,107. Find your home’s assessed value at njpropertyrecords.com.

Hillsdale Public Schools paid off debt from a past referendum, resulting in a property tax decrease for the 2023/24 school year. For a home assessed at the average, that was $108/year.

With voter approval of both questions on the Sept. 17 ballot, the projected NET increase indicates the amount a homeowner would “feel” after seeing a one-year tax decrease followed by a new tax for modernization/expansion of GW. For a home assessed at the borough’s average, that would be $58 per month for renovations described in Question 1 and about $12 per month for the addition described in Question 2. Question 1 must pass for Question 2 to pass. If voters reject Question 1 but approve Question 2, neither proposal would pass.

With voter approval of both questions on the Sept. 17, 2024 ballot, the projected NET increase indicates the amount a homeowner would “feel” after seeing a one-year tax decrease followed by a new tax for modernization/expansion of GW. For a home assessed at the borough’s average, that would be $58 per month for renovations described in Question 1 and about $12 per month for the addition described in Question 2. Question 1 must pass for Question 2 to pass. If voters reject Question 1 but approve Question 2, neither proposal would pass.

If your home’s assessment is different from the Hillsdale Borough average ($476,107), you can estimate your tax impact with a calculator. Please note that the estimated tax impact is an average over the 20-year term of the investment.  

To calculate your estimated tax impact:  

First, find your home's assessed value by entering your street address into this lookup tool.  

Then, personalize your estimated tax impact by multiplying your assessed property value.  

• For Question 1 - multiply your home’s value by 0.0016927 to find the estimated annual increase to school debt tax.

• For Question 2 - multiply your home’s value by 0.0002966 to find the estimated annual increase to school debt tax.

• To learn how much your school debt tax decreased after HPS paid off past debt in 2023, multiply your home’s value by 0.0002172.

The two proposals on the 2024 ballot total $62.4 million, which is $20.3 million less than the 2023 proposal to build a new school. The 2023 proposal was for $82.7 million. State aid is committed for $18 million toward the projects proposed in 2024, compared to $5.4 million in 2023. The state’s funding program awards a higher percentage of aid for renovation projects than it does for new construction. The Board of Education formulated the new plan with state aid as a priority, having heard from voters that the opportunity for state aid was important.

Additionally, this referendum offers two ballot questions: One for costs to renovate George White and one for costs to build an addition. Question 1 must pass for Question 2 to pass. If voters reject Question 1 but approve Question 2, neither proposal would pass.

Renovation costs calculated in Question 1 include strengthening the building’s foundation and structure; replacing HVAC, plumbing, electrical and communications systems; renovating much of the interior; safe removal of asbestos-containing materials where necessary; and the rebuilding of athletic fields after construction is complete and modular classrooms are removed.

Addition costs in Question 2 include the design, site, construction and furnishing costs of a two-story wing with six classrooms.

For both: Estimates include professional and permit fees, and contingency amounts that account for changes in material costs, gas prices, and interest rates.

If voters authorize the plan to sell bonds, those bonds would be bought back with a combination of state aid and local property tax revenue over 20 years. That timeline is the longest the district can borrow money for renovations. The 2023 proposal to build a new school was projected for a 30-year pay-back, which is allowed for new construction. This is similar to a bank offering a 6-year loan to the buyer of a new car, but only a 3-year load to the buyer of a used car. For Hillsdale residents, the change in pay-back timeline plays a role in the projected per-month costs. The 2023 plan spread the total over 30 years, while the 2024 plan spreads the total over 20 years.

The property tax system means residents will contribute to a modernized middle school only when they are benefiting by living in Hillsdale. Many current homeowners will move away before the bonds are fully paid and pass the remaining costs to new residents.

Our financial advisers take a conservative approach to bond borrowing estimates that account for market changes. That built-in cushion allows for fluctuation in cost estimates without altering the bottom-line numbers, especially because the total costs would be spread over many years and over many taxpayers. The district also has discretion in when to borrow; it does not have to sell bonds immediately after an approved referendum and can wait if rates appear to be trending downward.

The financial projection assumes an interest rate of 3.75%. That is higher than bonds have been selling for recently, which reflects the conservative approach that our financial advisers take. Like home mortgages, bonds can be refinanced to take advantage of more favorable market conditions years after the initial loan.

GW continually struggles with patchwork fixes for leaky roofs, old plumbing, failing boilers and inefficient air cooling/ventilation systems. Renovation would significantly limit this drain on daily costs to operate the school. More efficient mechanical and HVAC (Heating, Ventilation and Air Conditioning) systems would cut energy costs, and newer windows would support that.

Estimating potential operating costs is difficult because the district’s advisors cannot make calculations without knowing the specifications of all the “ingredients” that would make a modernized middle school – like boilers for heat and rooftop chillers for air conditioning. Those would be determined after voter approval to move forward, and equipment would be bought from the lowest bidder according to state rules for public school contracts.

While adding a six-classroom wing would expand the square footage of the school, provide needed classroom space and reduce overcrowding, it will increase utility costs for lighting, heating and cooling. However, efficiencies elsewhere in the building such as new windows and better insulation may balance those costs.

There are three known factors for future operating costs: Repair costs will go down. Efficiencies will go up. About 80% of the district’s operating budget is for personnel and that is largely linked to student count rather than square footage. If more space opens options for additional programming, HPS could consider hiring a science or STEM teacher.