The Haddonfield Board of Education unanimously approved the bonds from last year’s bond referendum to repair and restore facilities. Residents will save money since the bond interest rates came in lower than expected at 2.39 percent over 20 years, cutting slightly more than $8 million from the estimated debt service.
“We’ve had many conversations about our bond referendum, and we had questions of why don’t we go out for smaller bonds for a smaller tax impact. We originally came up with a conservative 25-year bond at approximately $300 a year for the average assessed home. We did our bidding for the bonding, and it came out better than we expected,” Superintendent Richard Perry said.
The previous numbers for the bond referendum had estimated an interest rate of 3.53 percent and payments of $300.49 for the average assessed home at $484,226 over the next 25 years. However, when the school district went out to bid, the interest number came in significantly lower at 2.39 percent.
Due to the lower interest rate, the district was able to cut the term of the loan to 20 years and save $40 per year for the average assessed home. The new tax impact for the average assessed home is $258.66 per year. This is a total debt service savings of $8 million, according to board president Glenn Moramarco.
“We’ve cut $8 million off in interest payments, and it’s frankly just a reflection of our very good bond rating and bond counsel,” Moramarco said.
The board also wanted residents to know that citizens would not be hit with the tax increase all at once. It will be phased in over the next two years. For the June 30, 2018, budget year, taxes will increase by 2.08 percent and then for the June 30, 2019, budget year, taxes will increase 1.38 percent.
These figures will be in addition to whatever regular school budget increase is approved for those school years, according to Moramarco.
Board member David Siedell also said the state aid numbers were finalized and the school came in at 38.87 percent rather than the previously estimated number of 33.04 percent.
The board expressed its happiness of saving the taxpayers money where it could.
Board vice president Susan Kutner also gave an update on the bond referendum schematic drawings. She said the project is continuing along very well and the drawings should be available by mid-September. As the board has been talking about making the drawing available to the public, it will be able to be viewed at the Central Administration Building around that time. The stadium report will also be available in a few weeks.
“(Architect Steve) Becica has done an excellent job,” Kutner said.
In other news:
• The board went into executive session to find a replacement for board member Joshua Drew, whose term runs through 2018. As of Friday, Aug. 25, a name was not given for the new board member.
• The next BOE meeting is scheduled for Sept. 22 at 7 p.m. in the Haddonfield Memorial High School library.
