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Tewksbury Township School District
Our Schools Need Repairs and Renovations
Our Schools Need Repairs and Renovations
A referendum is simply a vote. NJ public school districts must get voter permission to sell bonds, which is a way to borrow money. This qualifies districts for a special kind of state financial aid, and for Tewksbury that is an $8.5 million advantage.
Voters with an eye on the future agreed to build Old Turnpike School (in 1969) and Tewksbury Elementary School (completed in 2005). They invested in new schools for a community with a history that spanned centuries.
Now, decades later, those same schools need some work. The 1960s-era design of OTS doesn’t match the ways that building is used today. Though newer, TES shows the daily struggles that come from heating, ventilation, air conditioning (HVAC) systems that have just about hit their life expectancies. At both schools, exterior doors have suffered from everyday wear and tear.
To address the needs, spread costs over time, and capture about $8.5 million in state financial aid, the Board of Education proposes a plan to fund major improvements by selling bonds. Residents will vote on that plan Tuesday, November 4 as part of the General Election ballot.
Many Improvements with a Tax Decrease
Many Improvements with a Tax Decrease
Improvements proposed in the referendum’s Question 1 would result in a tax decrease compared to the rate for school debt. That’s because Tewksbury has a timing advantage. As the new debt starts, the school district will finish paying off debt from the construction of the elementary school.
Payments on the new bond would be less than payments on the bond that is nearly paid off.
Consumers might use this approach to pay off one car loan, then use a new loan to replace an older car.
The Board’s strategy also seeks the advantage of state aid. A New Jersey program for public schools makes borrowing a smart financial strategy because certain facility improvements get a special type of state aid.
Every one of the proposed projects qualifies for the maximum level of this program's funding.
In total, the state has committed $8.5 million toward the proposed improvements.
This aid is available when voters approve bond funding, but not when projects are paid for within the annual budget.
While consumers might try to avoid debt because it costs them more, school districts plan to borrow because it comes with the advantage of state aid.
Compare the cost of HVAC replacements at TES: Costs will be almost $10.6 million, and the state committed about $3.6 million toward that amount. Without the state aid that comes from a voter-approved referendum, the entire cost would come from the local operating budget.
Bond Referendum Virtual Forum
7 p.m. Tuesday, September 30
Tewksbury residents will hear from school district leaders and the financial and architectural advisors who led the planning for the Shaping the Future bond referendum. Participants will learn about that plan through a presentation and can ask questions through Zoom’s Q&A feature.
In addition, forum participants will learn about how voter approval of the first question on the ballot would result in a tax decrease because of state aid and careful timing.
Use this link to join this webinar-style forum.
Be Ready to Vote on November 4
Be Ready to Vote on November 4
Tewksbury's school bond referendum will take place as part of the General Election on Tuesday, November 4. Be sure to look toward the end of that large ballot.
The referendum includes two questions – one that would have a tax decrease, and one that would have a tax increase. Details are on the Funding page.
The Board of Education plans several ways for the public to learn about the schools’ needs and the funding strategy to solve them. The website is the primary source of complete, accurate and up-to-date information. A public forum September 30 will provide an overview of the plan and an opportunity for questions. Follow the district's Facebook page for updates and reminders. Check out the FAQs page for more details.
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