What is a bond referendum, and why do schools use that method as a strategic way to reduce costs?
A bond referendum is a vote (referendum) in which the school district seeks permission to borrow (through the sale of bonds).
Schools use this method to manage large-scale improvements because they can capture state aid that isn’t available any other way. That state aid is only available for specific kinds of projects, and only when they are paid for with voter-approved bond borrowing. Without it, the local property tax would cover the entire cost. Bonds are paid back over time, similar to the way a consumer uses a car loan or mortgage. In addition to affordability, that spreads the cost among the users who will most benefit from the projects.
For River Vale, the state has committed to contribute about one-third of the proposed $35.7 million worth of improvements.
What improvements are proposed for River Vale schools?
Through a comprehensive facilities assessment, River Vale strategically identified building maintenance projects and renovations, along with additions that would support the student experience. The investment would produce quick results to serve current students, and also would better equip River Vale to serve the next generation of learners.
The Board of Education will present the project through three ballot questions. Many of the proposed improvements in Question 1 address the buildings’ physical needs. In Question 2, the proposal is focused on the addition of air conditioning in areas where it is lacking at all three schools. Question 3 includes wellness-focused areas at the elementary schools. Question 1 must pass for either of the other questions to be valid. If voters approve Question 1, then either Q2 or Q3 could pass independently of each other.
What qualifying factors did the Board of Education rely on to select the architect and construction manager for these projects?
LAN Associates, Engineering, Planning, Architecture, Surveying, Inc. (LAN) has a proven history with the River Vale school district; the firm has been the district’s Architect and Engineer of Record since 2005. The Board of Education interviewed several architectural firms before selecting LAN based on the firm’s full-service approach and leading design skills.
LAN has in-depth knowledge of River Vale schools, their needs, and their path toward continued excellence. The firm recently guided the district through an update of its long-range facility plan, which involved a comprehensive physical condition survey of all district facilities. In addition to handling several construction projects for River Vale over the past 15 years, LAN also serves multiple school districts in Bergen County. It works with more than 30 districts and has completed more than 50 separate bond-funded projects for K-12 schools throughout the surrounding area.
LAN has proven its merit in a variety of construction projects, its integration of technology and leading design trends, and its ability to successfully manage a project from early concepts to completion.
If River Vale voters approve this April 20 bond referendum, the district will follow the state’s rules for seeking competitive bids for the work. LAN would provide construction administration services as the work is performed. The school district has also engaged EPIC for construction management responsibilities.
What physical building needs are covered in Question 1?
At Holdrum, a new connecting corridor built along the back of the school would open up dead-end hallways that cause traffic backups whenever students have to change classes. The corridor would provide locker space that is not available in the existing hallways. Lockers are currently housed in classrooms, where they encroach on space and leave teachers unable to lock their rooms.
The roofs at Holdrum and Woodside need complete replacement, and a 2003 addition to the Roberge roof also has reached its useful life expectancy. Worn flooring and ceilings in classrooms would be replaced. Storage areas also would be added to classrooms. A nurse’s bathroom would be upgraded at Roberge. Main entrances at all three schools would be improved with canopies to offer cover in inclement weather and additional lighting for evening/nighttime safety. At Holdrum, the entryway would also be expanded, improving wheelchair access.
With a window-lined corridor to ease traffic flow, Holdrum’s new shape would create a multifunctional classroom and enclosed outdoor spaces that would meet the academic and general wellness needs of our students. The proposal includes landscaped courtyards for outdoor classrooms, community planting beds, and additional areas for quiet study and stress-relief breaks. Students could use the space to grow a variety of plants for science or other courses. An indoor Wellness Center at Holdrum would be a flexible space for the school’s "healthy mind" activities such as yoga, and also would be available to host community programs outside of school hours.
Why is climate control separated into Question 2 on its own?
The River Vale community has a history with the issue of climate control for its schools. In 2000, the Board of Education held a bond referendum for multiple projects including air conditioning. It failed, and the inclusion of air conditioning was considered to be a dividing point. A second referendum was held later that year, with AC as a separate question; the main proposal passed but voters still said no to A/C.
Now, two decades later, air conditioning remains a top request for many parents. The school year runs to late June, but warm weather starts in early spring and lasts through mid-fall. More students struggle to acclimate from their cooled homes to their warm and humid classrooms, and that impacts academic focus. Rising rates of allergies and asthma have kept climate control on people's minds, and most recently the pandemic has heightened interest in air filtration and fresh air exchange. The Board of Education is proposing comprehensive climate control again, giving voters the opportunity to consider the question on its own merits.
What are the wellness areas that make up Question 3?
While Question 1 includes adding a corridor at Holdrum to enclose courtyards for academic and other activities, and create an indoor Wellness Center, the need for those kinds of spaces also exists at River Vale’s elementary schools. Question 3 would create smaller-scale Wellness Centers within the building footprints of Roberge and Woodside.
At Roberge, the wellness area would be designed for flexibility, with ample storage space and collapsible walls to accommodate both indoor and outdoor learning opportunities. The Wellness Center would be included within Roberge’s existing courtyard adjacent to the existing Media Center. Reclaiming undefined and underutilized space, the center would project from the corridor to provide a space that interacts with the outdoor environment.
Woodside’s Wellness Center would be situated between the kindergarten and art/music wings, creating a private space away from public views and entrances. Across the hall from the main office, the Wellness Center would also include a new guidance office for a better connection to the main administrative spaces. This room would reflect the size and scope of the Roberge addition, featuring a flexible learning environment with a strong connection to nature and the outdoors.
How do Wellness Centers fit in with the district’s educational mission?
River Vale’s educational approach considers the whole student, and all of the factors that contribute to learning and development. As part of that commitment, each River Vale school has dedicated rooms for music and art instruction, which is exceptional. Many other schools have shifted those “specials” to second-class status with teachers who push mobile carts from room to room.
The complex needs of today’s students have also led to the growth of social and emotional learning (SEL) – a concept that has been fully embraced at River Vale. In short, SEL makes the connection between emotional well-being and the ability to effectively focus on academics.
At River Vale, teachers incorporate SEL practices such as mindfulness and yoga into the classroom, and are advocating for even more student support: When responding to a survey in connection with a 2019 facilities assessment, a clear consensus of teachers urged the district to address students’ stress and anxiety. The teachers’ recommendations then resonate even more now, as students deal with the effects of long-term isolation and instability from COVID-19.
Why are these projects being proposed instead of other needs?
The projects included in the bond proposal address a number of district needs, and are strategically identified to capitalize on the availability of state aid. To qualify, projects must be directly tied to education; athletic fields and facilities generally are not eligible for state aid. That doesn’t mean they won’t get done, but it does mean a bond proposal is not the most cost-effective way to do them.
Other needs are being paid for through the generosity of the River Vale Education Foundation and River Vale Parent-Teacher Association. The RVEF recently completed a five-year pledge to provide $100,000 annually for technology-based initiatives, and also has contributed $750,000 for science labs and media centers. For the 2020-21 school year, the RVEF has pledged $9,000 for teachers to run yoga sessions. The PTA has replaced playground equipment and awarded teacher grants, among other support.
How will these 3 questions look on the ballot?
On the ballot, the questions will ask the voter to approve permission for the school district to borrow money through the sale of bonds. “Bonds” are like IOUs, sold through a competitive bidding process and bought back with interest. River Vale anticipates a 25-year loan, although specific details such as the payback schedule and interest rate can't determined until the district gets voter permission to borrow and completes a competitive, public bidding process.
For practical convenience, informational materials round the dollar amounts. The ballot, however, will show these full amounts and will not include the state aid:
Question 1 asks permission to borrow up to $25,000,463 for projects in that part of the proposal. If Question 1 does not pass, neither Question 2 or 3 will be valid even if “yes” votes for those outnumber “no” votes. Question 2 asks permission to borrow up to $9,025,031 for projects in that part of the proposal. Question 3 asks permission to borrow up to $1,704,091. If voters approve Question 1, then either Q2 or Q3 could pass independently of each other.
How would bond borrowing fit with the district’s record of fiscal responsibility?
River Vale’s administration and Board of Education have a record of fiscal responsibility, and the bond proposal is a key strategy for continuing it. In New Jersey, school operating budgets are capped at 2% growth per year – and River Vale has held expenses below that tight line for the past several years. The district has also kept up on basic building maintenance, and its partnerships with the Education Foundation and PTA help enhance the student experience with minimal impact on the budget.
These proposed improvements are too costly to be accomplished through the operating budget. Yet a facilities assessment showed they would improve the student experience and shield against costly emergency repairs in the future. Bond borrowing not only separates costs from the operating budget and its 2% cap, it opens the door to state aid that can’t be obtained any other way. For River Vale’s three-question bond referendum, state aid is estimated to cover nearly one-third of the total cost of the projects, instead of local taxes covering the cost entirely.
What would be the impact on River Vale property taxes?
River Vale is in the unique position of paying off the investment that voters approved almost 20 years ago, and that creates the opportunity to re-invest without feeling so much of the tax impact. The owner of a home assessed at River Vale’s average contributed about $230 a year toward that debt until 2020, when it was paid off. The Board of Education proposes rolling that amount into a new, $35.7 million investment. State aid would reduce that amount by more than $10 million, and the Board would contribute $6.7 million from its Capital Reserve "savings." To fund the remainder, homeowners would feel an increase of about $148 a year for the improvements proposed in all 3 questions. The opportunity can be compared to a family paying off the loan for one car, and redirecting that payment plus a few dollars more toward investment in another car -- a continual balance of spread-out costs to cover needs.
To provide information that is fairly and completely presented, the district is sharing a lot of details with the public. That can get complex! Here is a simpler breakdown. These amounts are based on a home that is assessed at River Vale’s average, and after the state kicks in its financial aid and after the Board draws on its savings:
What the homeowner has been paying for school debt until 2021: $230 per year
What the homeowner would pay additionally for Question 1 (building improvements): $34 per year
What the homeowner would pay additionally for Question 2 (air conditioning): $89 per year
What homeowners would pay additionally for Question 3 (elementary school wellness centers): $25 per year
If voters approved all three questions, the total increase would be $148 per year. That’s less than $13 per month.
What makes this the right time to pursue a bond vote from a financial standpoint?
The convergence of timing and opportunity is pointing River Vale toward these long-term investments in its schools. The district has a short window of time to stay close to the current tax rate, as it has just finished paying off the debt from the last bond loan approved by voters in 2000. Since that time, the majority of classrooms have not been renovated, and roofing at all three schools has aged to the point of needing replacement. Waiting to make these improvements would only cost the district more, especially if emergency repairs are required.
The district has been keeping up with necessary maintenance and upgrades, but gained more insight into building priorities when architects completed a formal Physical Needs Assessment in June 2019. That process identified a list of deficiencies, some of which can be solved within the capital reserves and general operating budgets. For other needs, the opportunities of state aid and debt pay-off make this the right time for River Vale to pursue a bond referendum.
How much state aid is pledged to help pay for these improvements?
River Vale is in the unique position of paying off the investment that voters approved almost 20 years ago, and that creates the opportunity to re-invest without feeling so much of the tax impact. The owner of a home assessed at River Vale’s average paid about $230 a year toward that debt until 2020, when it was paid off. Rolling that amount into a new, $35.7 million investment – and subtracting more than $10 million in state aid -- means that homeowner would feel an increase in the neighborhood of $148 a year for the improvements proposed in all 3 questions. The opportunity can be compared to a family paying off the loan for one car, and redirecting that payment plus a few dollars more toward investment in another car -- a continual balance of spread-out costs to cover needs.
How is the “assessed” value of a home different from its “market” value?
The “assessed” value of a property is the amount of value used to determine property taxes, and it is almost always significantly different from the market value. To find the assessment of your home, look on your property tax bill. Guessing how much you could sell your home for on the market, even if your neighbor’s similar home was just sold, will not be an accurate estimate for the assessed value. In River Vale, the average home assessment is mathematically calculated to be $593,370.
The State of New Jersey has a property tax rebate program for seniors and people with disabilities who meet income eligibility requirements. The program "freezes" the amount that eligible residents pay, even if the community's tax rate rises. More information about the Senior Tax Freeze program is here.
How will the golf course development have an impact on the schools and property tax revenue?
The Edgewood Country Club golf course is being redeveloped to create approximately 250 homes. . Those homes are not calculated into River Vale’s projections for the tax impact of these bond proposals; they can’t be until they are built and assessed for taxes. However, they will provide a new stream of property tax revenue, which spreads the costs a little more for everyone in the community.
If families with children move in, River Vale schools have room for them. The district’s enrollment has dipped about 300 students over the past 15 years.
What steps has River Vale already taken to improve air quality?
As River Vale prepared to reopen its schools in Fall 2020, the school board sought solutions to improve air filtration and fresh air exchange - functions that had gained importance since the start of the pandemic. After consulting with experts, River Vale purchased specialized needlepoint bipolar ionization systems that work with existing HVAC equipment to help remove contaminants from the air.
The installation of air conditioning in the remaining areas of the schools will expand this healthy initiative, as ionization systems will be added to all new equipment.
Why can't air conditioning be paid for through the district Capital Reserve "savings account?"
The district is contributing $6.7 million from its Capital Reserve fund to help cover building costs in Question 1. This also will reduce the amount of bond borrowing required. Some might wonder why this savings isn't applied to air conditioning instead. It simply wouldn't be enough to cover it: The costs of air conditioning installation in Question 2 total more than $9 million, but the structure that supports the A/C - including rooftop HVAC units - accounts for an additional $6 million in costs in Question 1.
The newly approved American Rescue Plan will distribute federal funding with a focus on providing PPE,
addressing "learning loss," student mental health and hybrid/remote instructional needs, and potentially ventilation system repairs. The April 20 referendum is an opportunity for River Vale to control its future and plan for its specific needs for air conditioning and other projects, without waiting for the rules that will be developed for this federal funding. However, past funding programs like this have allowed school districts to apply future funding to past purchases, when the expenses qualified for the program. It is also possible that future federal funding will cancel out any of the state aid that would come from a local, voter-approved bond borrowing. As the rules are developed, the district will explore how the American Rescue Plan funding -- and any other funding source -- could reduce the property tax cost of these improvements.
Why is air conditioning proposed for schools that have gotten along without them?
Air conditioning has been a hot topic, no pun intended, in River Vale for years. It was part of a bond proposal two decades ago, and since then the compelling reasons for it have increased. Those include the health of students and staff, particularly those who are part of the increasing number of people with asthma and allergies. Children focus more easily in air conditioning, especially since they are accustomed to the air-conditioned comfort of their homes. The use of computers and other electronic equipment has steadily grown, and they operate optimally in climate-controlled conditions.
River Vale’s reconsideration of air conditioning started before the pandemic, but COVID-19 underscored the need for proper ventilation in occupied spaces. The district now has an opportunity to expand the latest ventilation technology throughout its school buildings. That has added relevance and urgency to the air-conditioning proposal.
Another advantage: Adding air conditioning to schools could be a selling point for local real estate, particularly since a number of neighboring districts now have A/C
The proposal would replace rooftop HVAC units that are 20 years old with new, more efficient equipment to support air conditioning and heating. The referendum also would reduce electricity expenses by converting to brighter, cost-effective LED lighting in classrooms. The change from fluorescent to LED lighting could reduce lighting-related electrical costs by up to 50 percent.
River Vale will continue to seek out energy-efficient solutions to save costs throughout district buildings.
Why are unit ventilators a safer and more effective option than window units for River Vale classrooms?
The proposal to install air conditioning throughout district classrooms is designed around unit ventilators. Unlike window air conditioning, unit ventilators can work in conjunction with newer filtration technology that addresses modern concerns.
Unit ventilators cool rooms more evenly than window units and provide fresh outdoor air. Window units recirculate classroom air with no capability of providing fresh outdoor air, but unit ventilators allow for the flow of fresh outdoor air. This school year, the unit ventilators that are already in place have been enhanced with cutting-edge ion-based filters that mitigate airborne contaminants. The same filtration system would be used with new unit ventilators in the district.
How would adding a corridor enhance the student experience at Holdrum?
The Middle School was designed with corridors that come to dead ends, forcing students to double back to get to their classes. Students jostle for position in crammed hallways, resulting in late arrivals to class. Teachers identified this logjam as a prime opportunity for student conflict. Plus, the hallways are too narrow to accommodate lockers. Students’ lockers are currently housed in classrooms, which means teachers have to leave their rooms unlocked.
The proposed Holdrum addition would connect a window-lined corridor across the existing hallways, improving traffic flow and adding space for lockers. Moving the lockers out of classrooms would provide teachers with more functional space.
The Middle School’s revamped footprint would enclose two outdoor spaces that would serve multiple purposes. The courtyards’ intended uses include outdoor classrooms, study areas and stress-relief breaks – complete with instructional gardens. They would provide an additional spot for yoga, which is currently held in the gym.
How are the proposed building canopies more about safety than decor?
Question 1 includes some architectural touches that are part visual, part functional. Construction of new canopies would establish a common look for River Vale schools, and they would more clearly direct the public to the security-enhanced main entrance at each building. But there’s more to this piece of the proposal than a pretty, polished look for River Vale schools.
Current coverage against rain and snow is very modest at all three buildings, and the extended canopies would offer more protection during drop-off and pick-up times. Plus, the new coverings would provide additional lighting for nighttime safety, such as when students are waiting to be picked up after games and other evening activities. At Holdrum, the proposal includes reconfiguring the small vestibule to make it more friendly for wheelchair access. The cost of the canopies totals about $750,000 -- a small fraction of the bond referendum, but a very visible and useful long-term improvement.
How would the Holdrum Wellness Center benefit River Vale beyond the school community?
The Holdrum Wellness Center would serve a dual purpose as a community space to host programs. The proposed design has a separate entrance that could allow the room to be used while it is closed off from the rest of the school. This adds flexibility for hosting a wide range of school and community events in evenings and on weekends without compromising school security.
Why might school construction costs be higher than what is typical for residential or commercial space?
It would be convenient to compare construction costs on a per-square-footage basis in an attempt to determine if project estimates are reasonable. That comparison is difficult for school construction because of the rules for those projects, including fire safety regulations and Americans with Disabilities Act standards. The cost estimates that form River Vale's bond proposal also include percentages for professional fees and project contingencies, so the public is informed of all costs rather than just those for core construction/renovation.
Price comparisons aside, there are reassurances for the public. School districts must use a competitive, open bidding process and contract with the qualified business that submitted the lowest bid. Contractors performing the work must pay wages that are comparable to those of union projects. If actual costs are lower than estimates, the district cannot spend more than the total dollar amount that voters approved.
What’s the tax impact of not investing in our schools through a bond now?
Without voter approval, there will be no debt payment for schools on River Vale’s 2021 property tax bills. The owner of a home assessed at River Vale’s average would keep about $19 a month in his or her pocket. That’s a short-term outlook, because some of the proposed projects will have to be completed with or without bond funding. Roof replacement/repair, for example, will have to be done to prevent building damage.
By packaging those must-do maintenance projects into a bond proposal, River Vale can capture state aid that isn’t available any other way. That form of state aid is only shared with school districts where voters approved bonds. There would be a short-term reduction in River Vale's property taxes for debt, but higher operating costs (without state aid) for must-do projects.
With all the cost estimates, how do we know what the real cost will be?
Several factors go into the tax impact, and some of them are constantly changing. School districts rely on the experience and advice of knowledgeable financial advisers to project the factors. They include the interest rate(s) at which the bonds would be sold and the construction costs -- all of which go through a public, competitive process that requires the school board to accept the lowest-cost bid. Those factors wouldn’t be known until after a successful referendum that asks voter permission to sell bonds.
Advisers also project the property tax base, which continually changes. In River Vale, the current projection does not include the addition of new homes being built at the Edgewood Country Club golf course – all of those will contribute new property tax revenue. The result of all the factors is an estimated tax impact, and it is expressed as the annual cost for a home assessed at River Vale’s average. Mathematically, the average assessed value among River Vale homes is $593,370. But just because the information is based on estimates doesn’t mean there is no limit to the spending. The district cannot spend more than the ballot asked for, and cannot spend the bond money on anything that was not approved by voters.
What happens if costs are lower?
Bond-funded school improvement projects get significant oversight from the State Department of Education. If costs are lower than anticipated, state law requires the district to pay down principal of the bonds, which would lower taxes. The district cannot use bond funding to pay for any projects other than the ones approved by voters, although it can use savings in one area to cover cost overruns in another – so long as those projects were among those approved by voters.
What happens if costs are higher?
One reason there is significant state oversight for bond-funded school improvement projects is to prevent costs from far exceeding estimates. Percentages are built in for cost overruns that can happen with projects that are planned in one year and completed over the next two or three. Around all those estimates are two known factors: River Vale school leaders have relied on expert consultation to develop the plans, and state law restricts the district from spending more than the amount on the ballot.
In the unlikely event that actual project costs start to exceed bond revenue, the district will search for more efficient means of achieving the referendum’s overall objective and/or reduce the scope of work. The district cannot spend any more on the projects than the amount that voters approved.
What major upgrades has the district been able to accomplish without bond borrowing?
The Education Foundation recently completed a five-year pledge to provide $100,000 a year for technology-based initiatives. The group also has paid for other major improvements, including science labs and media centers. That generous assistance has taken a financial burden out of the district’s operating budget, making room for staying under the state-mandated 2% spending cap.
Buildings have been well maintained over the past several years, and the district has been fiscally conservative enough to stay under the 2% cap. Some projects have been included in the referendum, such as roofing, floors and ceilings, because they are beyond the point of routine maintenance, they are due for replacement, and a voter-approved bond referendum qualifies them for state aid.
Who can vote in this bond referendum?
To vote in this April 20 bond referendum, you must be registered to vote with a River Vale address. If you’re not sure if you are registered, or what address is associated with your registration, find out at this State of New Jersey website. If you are not registered, or need to update your registration, it’s as simple as sending in a form.
The deadline to register for this bond referendum is March 30.
How can people vote in person?
The New Jersey Governor has announced that in-person voting will be available for April 20 school elections like River Vale's bond referendum. River Vale polls will be open from 8 a.m. to 8 p.m. on Tuesday, April 20.
Two polling places will serve the township's 5 districts.
Districts 1 & 5: River Vale Town Hall, 406 Rivervale Rd
Districts 2, 3 & 4: River Vale Community Center, 628 Rivervale Rd
If you are not sure of your voting district, you can find it on this map.
If you show up to vote in person and are told that a ballot was mailed to you, ask for a "provisional ballot." Those ballots are typically counted after mailed ballots, as names are cross-checked to protect against fraud.
How can people submit Vote By Mail ballots for this special referendum?
Vote By Mail ballots are an appealing method of making your voice heard. You can avoid the risk of inclement weather, a suddenly hectic day at work, long lines at the polls, and other inconveniences by sending in your marked ballot.
If you voted by mail in a recent election in New Jersey, and your address is still the same, you might receive a Vote By Mail ballot automatically due to recent changes in state procedures. Watch our Facebook page for a “be on the lookout” announcement when ballots are mailed to these voters.
You can ensure that you’ll receive a Vote By Mail ballot by submitting an application. Forms are here, and they must be RECEIVED by the county by April 13 in order for a ballot to be mailed to you -- but more advance time is a good precaution. Be sure to closely follow all of the directions on that ballot. They are picky as a protection against voter fraud, and ballots that are not correctly prepared could be tossed out.
Vote By Mail ballots must be postmarked by the April 20 date of the election.
Voters can track their mailed ballots to ensure they were counted. Start by creating an account with the state's Voter Registration System.
How can residents learn more about River Vale’s bond proposal to improve our schools?
Updates on the referendum process will be provided through this website and district social media posts. If you have a question that isn’t addressed on this site, send it to RiverValeVote@rivervaleschools.com
A Virtual Referendum Forum at 7 p.m. April 6 will offer an opportunity to ask the experts about the bond proposal. Questions can be submitted in advance to the email address above. The live-streamed event will include project architects, financial advisers and school staff members. The forum will be recorded for those who can't watch it live.