Strong Schools. Strong Communities.
Financials
Strategy = savings + state aid
River Vale takes pride in its long history of financial responsibility. The district has held its operating budget under the state-mandated 2% cap for several years and has carefully maintained its buildings.
But a Physical Needs Study in 2019 pointed to required improvements that would cost more than the regular annual budget could cover. These projects included replacing roofs and HVAC units that were past their useful lifespan, and installing air conditioning in all buildings to create a healthier school environment.
Paying for the upgrades through a bond referendum offered the advantages of state aid, and the ability to spread out payments over time. River Vale also contributed $6.7 million from its capital reserve funds. Voters approved bond borrowing for building improvements in an April 20, 2021 election.
How are the projects being funded?
BONDS: The Board sold $33,325,000 in bonds, securing an average interest rate of 2.01%. The original projection was for 2.10%; the competitive bid process saved more than $350,000. The bonds will be repaid over 25 years.
STATE AID: State funding that is only available through a voter-approved referendum will contribute 29.3 % of the amount borrowed through the sale of bonds.
CAPITAL RESERVE: The district opted to use money in its “savings account,” known as capital reserve funds, toward the important investment in school buildings. River Vale contributed $6.7 million from its capital reserve funds to the project. The money served as a down payment on the project costs, reducing the amount the district needed to borrow through bonds. The intent to use capital reserve funds was presented to voters before the referendum.
