Embedded Files
A solid strateGy
A solid strateGy
Maywood schools are due for infrastructure upgrades just as rising enrollment is creating a demand for more space. The district determined a bond referendum is the best strategy to meet these needs because it will unlock $6.2 million in state aid toward the $22 million project costs, if voters approve. A successful referendum is the only way to access this state aid for school building improvements. If we don't access the $6.2 million in state aid, we'll still have to make these critically needed improvements, with local taxes paying 100% of the costs.
What’s the tax impact?
What’s the tax impact?
The tax impact for the new school debt would be under $28 per month for the owner of a home assessed at the borough average of $449,058.
Remember, assessed value is different than market value. The market value is a home’s potential sale price, while assessed value – typically a significantly lower figure – is used to determine tax bills.
You can find your home’s assessed value on your borough tax bill, or search your address in this tax assessment database.
How has THE DISTRICT SAVED $$ over the last decade?
How has THE DISTRICT SAVED $$ over the last decade?
The district saved on an administrator salary by creating a shared principal/superintendent position for Maywood Avenue School.
The district installed new boilers using incentives through the state. Maywood also installed a new building controls system and lighting occupancy controls, covered all windows in energy-efficient film (which is also bullet resistant), equipped all outlets with plug load controls, and converted to LED lighting.
The district’s new sending agreement is helping to contain costs. Three years ago, Maywood shifted its partnership from Hackensack School District to the Becton Regional High School District. If all of Maywood’s students went on to Hackensack this year, Maywood would be paying an additional $1,031,359 in tuition.
Maywood participates in shared service agreements through its membership in Bergen County Region V for Special Education. The district purchases services and transportation together with nine other local school boards to achieve savings. Maywood also has purchased its own fleet of buses to minimize the impact of skyrocketing transportation costs.
Maintaining students with special needs in our district also has controlled costs. We expanded our Maywood Abilities Program to grades 4-8 in 2014-2015, and have been able to keep students with special needs in our schools. Otherwise, we would pay steep out-of-district tuition and transportation costs for students to be educated elsewhere.
Close-to-home comparison
Close-to-home comparison
Budgeting for a school district is, of course, a larger-scale effort than budgeting for a household.
But bond borrowing has similarities to common consumer financial strategies: Much like a homeowner would finance improvements through a home equity loan, the district would pay for projects by borrowing (through the sale of bonds) and spread the project costs over time.
is the timing right?
is the timing right?
We’re working closely throughout this process with financial advisers, who note that interest rate hikes have not impacted the bond market as much as other areas of the economy. Our proposal is built on conservative figures, providing a cushion if interest rates go up again before we borrow.
Like other costs associated with this plan, the bond rate will depend on a competitive bidding process. Competition for the best rate is a benefit for taxpayers, especially when costs have been shifting.
The bonds can be refinanced -- just like a mortgage -- if rates improve over the 20-year borrowing term.
On the other hand, waiting could prove costly for Maywood schools. Our aging roofing, HVAC equipment and fire safety systems are at risk for emergency repairs that would still leave us without a long-term solution. As enrollment keeps growing, a space shortage could require Maywood to send students with special needs out of the district for services, incurring high costs for tuition and transportation.
5 financial facts
5 financial facts
Payments on new debt would not begin until 2025.
Most of the proposed projects qualify for the maximum amount of state aid.
The modular building (example is pictured) is proposed as a cost-efficient alternative to adding onto a school.
Improved HVAC, particularly A/C, would offer opportunity for rental revenue.
Added space would avoid the high cost of sending students out of district for special-needs services.
Page updated
Report abuse