Don't see your referendum question answered here- please email ssnyd@hollandschool.org or matthewdavis@hollandboe.org
Don't see your referendum question answered here- please email ssnyd@hollandschool.org or matthewdavis@hollandboe.org
Referendum FAQs
The Township tax reassessment may result in a homeowner seeing an increase in home value as a result of this process. Just as the average increase for the referendum per homeowner is estimated to be $350 on the average home assessed at $284,233 the actual cost of the referendum per homeowner will be dependent on where your own home value is in comparison to the average. Those with assessed values greater than $284,233 will pay more than $350 and those with assessed values less than the average will pay less than $350.
The same will be true for the reassessment. If your home value increases the same as the average, you will not pay any more for the cost of the referendum or for your school taxes.
The school district will not collect more taxes on the referendum cost from a reassessment. Once the bonds are sold, the amortization schedule is fixed. This is a consistent part of the equation. The variable is the assessed values. If the assessed values change(and they do every year), then the rate is adjusted that is applied to the assessed values to collect the same amount of tax each year. The amortization schedule will be set as close to flat each year as possible. The average tax rate applied to the referendum cost is .125 (cents). If the home value increases, the rate decreases. See the example below.
$284,233/100= $2,842.33 x .125 = $355.29
$300,000/100= $3,000.00 x .118 = $355.29
Interest rates at the time of the bond sale will also impact the final cost. The estimates are based on a 4% interest rate. The current interest rate trends are working in our favor.
The state is paying debt service for school districts and this has been consistent for the last 13 years. There has been no indication from the state that there is going to be a change in this commitment. The educational leadership and our professionals are connected to the organizations and state liaisons that would receive notifications to expect a change. There would be statewide dissatisfaction and unrest if the state would decide to not fund debt service aid. It is also true that if the referendum does not pass, the need for facility improvements remains. It is also true that if the board were to try to fund these projects outside of a referendum there would be no financial benefit from the state and the cost would be 100% on the taxpayers rather than 66%.
The District has recognized the State’s promise to funding most recently with the approval of the Preschool Expansion Aid Grant. Holland Township is guaranteed 100% funding for our Preschool programs until 2029-30 school year. This example further illustrates the State’s consistency in maintaining its commitments - as those approved after 2024 were informed in advance of a 60% funding rate, and districts approved prior to 2024 have continued to receive their full 100% funding as promised. This reflects the State’s reliability and supports confidence that debt service aid will likewise remain stable, with no unexpected changes to existing commitments anticipated.
The Holland Township School District’s referendum is to address critical infrastructure projects that focus on improving the health and safety of students, staff and the community. The proposed projects include replacing the slate roof, HVAC improvements to an aging system, asbestos removal, upgraded burglar alarm system, renovations to classroom spaces, the art and music room, and repairs/upgrades to bathrooms.
The referendum allows the district to take advantage of New Jersey’s Debt Service Aid, which covers approximately 40% of project costs, resulting in a lower tax impact for residents.
A bond referendum is a vote to consider a public entity’s plan to borrow through the sale of bonds. Public school districts can sell bonds to generate funding and repurchase them with interest over time. In that way, bond borrowing is similar to how a homeowner might use a home equity loan to make improvements and pay that loan back over years. Property taxes make payments on those bonds, so voter permission is necessary to sell them.
The State of New Jersey offers to fund districts under the Educational Facilities Construction and Financing Act(EFCFA) known as Debt Service Aid. All New Jersey taxpayers contribute to this pool of school improvement funds, but only districts with voter-approved bond referenda benefit from it. Holland is eligible for approximately 34%(6.2 million) in reimbursement of the costs of our school facilities projects.
Voter approval in November 2026 will allow the Holland School District to begin the bid process as early as Spring of 2027. Some renovations will take place during the summer 2027 and all projects will be completed by December 2030. Construction activities will not interfere with the day to day operations of the district. Most projects will take place during summer months. Should any construction activities occur during the school year, construction will take place after school hours. Instruction time for students will not be affected.
The Holland Township Board of Education understands the concerns of our community members who are seniors or are on a fixed income. We have investigated several opportunities our seniors and our community members on a fixed income can take advantage of (and we will assist in filing) to help offset the costs of property taxes. We are referring community members to investigate the ANCHOR program, NJ’s Senior Freeze program as well as STAYNJ.
Taking advantage of these programs falls on the individuals who may qualify. Individuals who may qualify must take the steps necessary to receive the benefits from these programs. These programs have no impact on the school district or how much tax is collected to pay the annual debt payment on the bonds. We have been assisting individuals in gaining access to the application process for these programs. The application window closes on October 31st.
The Department of Education program that provides debt service aid has been around since 2000 This program has been the state’s primary mechanism to support school funding for facilities improvement, while districts preserve annual budgets for daily operations directly related to education. Districts across the state have seized this opportunity for funding.
Another assurance to the taxpayers is the district’s Final Eligible Cost (FEC) letters that affirm the amount of debt service aid toward the projects. As part of the referendum process, the district submitted project applications for the proposed work. These applications were reviewed and approved, with the promise that, if voters approve, the state will pay the specified amount to the district annually to offset the taxpayers’ share of the investment.
The architects estimate the costs of the projects outlined in the referendum, including a soft cost cushion, which is in line with industry standards. The soft costs for the referendum include permit fees, regulatory agency fees, bonding fees, construction manager fees, legal fees, testing fees(as needed), professional fees(architect, bond counsel, financial advisor), and contingency costs for potential increases in market pricing.
The ballot question acts as a promise to the taxpayers that the district may not spend more than the amount listed in the question and may not complete projects outside of the scope of work outlined in the question. The projects can not legally go over budget. The referendum represents the maximum total cost of all the projects.
While every loan comes with interest, the interest rate is much lower than a mortgage or car loan(4% is the conservative rate used for the estimated tax impact).
Interest has been included in the tax impact calculations- these estimates include the interest, soft costs, and debt service aid plus the estimated project costs.
The debt service aid from the state goes toward the principal and interest, not just toward the project costs.
This is a 20 year, tax exempt school bond- interest is spread across this entire period, among all taxpayers. The bond can be refinanced in the future if rates improve.
If voters approve the referendum, the Board is only allowed to spend money on the projects outlined in the question, within the dollar amount listed on the ballot.
The conservative cost estimates include contingencies, which take into account a realistic level of possible market changes in materials/labor costs, escalation over the construction period and unforeseen conditions. If actual costs exceed what voters approved, plans will have to be adjusted to fit the budget.
As a public school district, Holland Township School must use a competitive bidding process that ensures taxpayers get the lowest contracted price for the work. The district’s architect will only prepare final design and bid specifications for the projects if voters approve the referendum.
Question #1-
Wooden Window replacement
Slate Roof Replacement(50 Architectural Asphalt Shingle)
Unit Ventilator Replacement(middle school classrooms-all)
HVAC Controls
Gymnasium Ventilation
Boiler Replacement(1939 wing)
Asbestos Removal
Steam Trap Replacement
Question #2-
Cafeteria Renovations(including replacing stage floor, removal of cork walls, theatrical lighting, etc)
Classroom Renovation(2 classrooms, art room, music room)
Bathroom Renovations(1959 wing)
Lockers
Burglar Alarm
Staff Toilet Renovations(4 restrooms, down to studs w/ new lines)