Laura’s Notes on the 02/26/2025 BOE Meeting

Planning a successful referendum revolves around three critical factors: Scope, Budget, and Tax Impact.

The District’s Debt

In 2005, BHPS successfully passed a referendum, with bonds issued in 2006.

In 2014, the District refinanced its debt, leaving only one outstanding bond set to mature on March 1, 2026.

When existing debt is nearing maturity, school districts often replace it with new bonds, minimizing or eliminating tax impact on residents. To ensure a smooth financial transition and avoid gaps in funding, the District must issue new bonds within the same fiscal year as the maturing debt.

The Referendum Process

1. Meet with Administration – Establish a strategic plan.
2. Engage Key Experts – Work with architects, bond counsel, and the finance team.
3. Set a Target Date – March 2026 is the anticipated referendum date.
4. Develop a Submission Schedule – Outline key deadlines.
5. Assess Facility Needs – Identify and prioritize capital projects.
6. Determine Educational Projects – Align initiatives with district goals.
7. Conduct Capacity Analysis – Evaluate District practices and infrastructure.
8. Review Enrollment Projections – Analyze demographic trends.
9. Define Scope and Budget – Finalize project costs and funding strategies.
10. Incorporate Community Input – Gather feedback via surveys.
11. Address Legal Considerations – Establish key questions for bond counsel.
12. Conduct Tax Impact Analysis – Evaluate based on assessed home values.
13. Prepare Designs & Submissions – Develop schematic plans for state approval.

The Vote

Holding a special election for the referendum would cost the District approximately $30,000.

While adding the referendum to the general election ballot in November would eliminate this cost, consultants have determined that the timing and procedural requirements make this option unrealistic for BHPS.

Tax Impact & State Aid

Many referendum projects qualify for 34% state aid.

For example, if the proposed projects total $10,000,000, the actual cost to taxpayers—after applying the 34% state aid contribution—would be approximately $7,000,000.

The final tax impact will be calculated based on the total project costs after state aid is factored in.

Read More on the BHPSNJ Referendum

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