FAQs

 A bond referendum is an election held to allow the residents of a school district to vote yes or no to a district's request to borrow money for building new schools, renovating existing schools, and/or acquiring/improving other long-term assets. 

The best time to begin projects would be in the summer, so working backwards from June 2024, the timing of the first payment for the new debt, and considering the time it will take for NJDOE approval and the bidding process, a September election is the ideal time for a vote.

Market value is used in real estate transactions, such as buying or selling a property. Assessed value, on the other hand, is used solely for tax assessment purposes 

State Debt Service Aid would keep the tax impact for the new school debt under $21 for the year for the average home valued at $758,910. The figure is also based on a conservative estimate of a 5.5% interest bond rate. That is $1.75 per month for all the projects.

The proposal is built on conservative figures, providing a cushion if interest rates go up again before we borrow. As of May 2023, all bond sales are still going under 4.5%.

The bond rate will depend on the competitive bidding process. Also, as required by law, the bonds must be refinanced if rates improve within the 20 years term.

State law requires the district to return all unused bond proceeds to the taxpayer in the form of an additional payment to the principal of the debt (tax relief). Closter Public Schools would not be permitted to use bond proceeds for projects other than those approved by voters as indicated on the bond question.

The district is required by the NJDOE to factor in at least a 10% contingency allowance as part of the overall cost of the projects. Closter Public Schools cannot spend more than the amount the voters authorized in the bond referendum, and cannot spend the money on anything except the projects outlined in the bond question.

The annual budget funds the district's educational program and regular maintenance for our buildings. With the limited ability to increase taxes, it is a significant challenge to find room in the annual budget for large-scale improvements. 

Voter approval would allow the development of more detailed plans, competitive bids for the work, and ordering of equipment. Work would be concentrated in the summers of 2024 and 2025 to minimize the disruption of school operations.

With an approved referendum, voters agree to ad valorem (property based) taxes to fund the annual principal and interest payment on bonds. Depending on the rate at the time of the sale of bonds, 34% of the assessed interest will also be covered by Debt Service Aid.

Without an approved referendum, the district will still face the same urgent building repairs and upgrades but will have to address them without the $2.2M aid and must fund them from the district’s operating budget or capital reserve fund.