Monmouth Regional BOE Unanimously Votes to Approve Putting Out $12.3 Million Bond for Referendum

The Board of Education unanimously voted on Tuesday to put out a referendum in the fall for voters to approve the purchase of a bond to support a .

While school officials had initially hoped to use debt service aid from the state to fund about 40 percent of the project, a recent slowdown in funding has had them turn to bonding to finance the work and hopes that the addition of solar paneling generates significant revenue to offset costs.

The referendum vote will be held on Sept. 27.

Bond attorney Ron Ianaole, of McManimon & Scotland, delivered a presentation to the board at its Aug. 2 meeting regarding the bonding for the project proposal. Ianaole, whose firm handles a majority of the bonding for schools in New Jersey, explained that the state has not provided debt service aid to schools in approximately 15 months. The board needed to decide whether to approve the proposal with the potential of not receiving state aid for the projects. 

“This may be a good time for the board to apply for the funds through a referendum as construction costs are low, as are the interest rates,”  Ianaole told the board. “With work bids coming in at lower levels it may be possible to spend less that the proposed $12.3 million.”

Business administrator Maria A. Parry explained, “Even without the state aid, the potential increase to tax payers would be minimal if any due to the savings made from new solar panels that would be applied to reduce the debt, and the previous debt will be completely paid off in the next few months.” 

Typically the tax payers would pay off the debt over a 15 to 20 year period, she said.  Without debt service aid from the state, the increase to tax payers is estimated at approximately $12 annually over a 20 year period, said Parry.

Prior to the vote, board member John Carretta questioned whether the solar panels would produce enough revenue through the sale of Solar Renewal Energy Certificates as well as savings on electricity.

The proposed project includes:

•Renovation of eight science classrooms;

•Addition of new auxiliary gymnasium;

•Updating of girls' locker room;

•New storage space for athletic equipment;

•New storage space for band and A/V equipment;

•Repointing of masonry;

•Addition of solar paneling;

•Removal of asbestos;

•Renovation of athletic training room.