There will be a “zero” debt service tax levy for the community this year, Montclair school officials said.
MONTCLAIR, NJ — Montclair school officials recently gave an encouraging financial update about the district’s landmark $188 million bond referendum.
In 2022, local voters approved $188 million worth of school construction work, which will be paid for with a series of bonds – and a large contribution from the state.
Since then, administrators in the Montclair Public School District say they’ve continued to try and chip away at the tax impact for local homeowners.
On Wednesday, Superintendent Jonathan Ponds and Business Administrator Christina Hunt gave another update about the bond referendum at the Montclair Board of Education meeting.
The good news? There will be a “zero” debt service tax levy for the community this year, they said.
The office of the superintendent gave some more details in a statement on Thursday:
“As was reported in September, the district worked towards reducing the tax levy for a second year in a row and conservatively predicted a reduction of 33 percent to offset the debt service tax levy. Through the district’s financial stewardship and diligence, the district realized increased interest income taking the 33 percent decrease in debt service tax levy to no debt service tax levy whatsoever.”
Administrators continued:
“Here’s how the numbers play out as reported in September. Last November when the $188 million bond referendum was passed, Hunt strategically worked to save the taxpayers $93 on an average home assessed at $628,952. This savings was due to debt service state aid received in Fiscal Year (FY) 2024 instead of being deferred to FY25. This represented a 46 percent debt service tax decrease.”
The superintendent’s office added:
“For FY25, the original projected debt service tax levy was $800,000 (which was $400,000 lower than the FY24 debt service tax levy). This represented an additional debt service tax decrease of 33 percent. Now with an increase in interest income and other financial variables, the debt service tax levy is zero.”
“Utilizing the bond proceeds to significantly improve our facilities is paramount to providing our students and staff safe and supportive learning environments – and for that, we are extremely grateful,” Ponds said.
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