APP: Middletown school board OKs $32M voter referendum

I don't know how I feel about this just yet. I first read about  this $32 million facilities upgrade referendum on Tuesday when it was first mentioned on Middletown Patch prior to that night's Middletown Board of Education meeting. $12.9 million is a lot of money to pass up if the state is willing to give it to you. On the other hand, asking residents to cough up $19.3 million (upwards of $62 dollars a year in additional property tax per homeowner) for the balance of the cash that is needed for school repairs and upgrades is pretty steep and I'm not sure how many resident would be willing to approve it..

From the Asbury Park Press:

MIDDLETOWN — Come March, voters will get to weigh in on whether they want to spend $32.9 million on building repairs in the district’s 17 schools.

Board members said they couldn’t walk away from $12.9 million in grant money the state Department of Education is offering to help fund the projects, so they are moving quickly toward the referendum. Local taxpayers would be responsible, after reimbursement from the state, for $19.3 million.

If voters reject the referendum, the district will not receive the grant money. The referendum asks voters to approve roof replacements at 15 schools and enhancements to heating and cooling systems at five schools. Another $802,739 — which also will be reimbursed by 40 percent but is not included in the referendum — will pay for new boilers and a district phone system.

Experts still are tinkering with the numbers but have come up with two scenarios to explain the possible tax impact for Middletown taxpayers:

• If the board bonds the $32 million over a 15-year period, it would cost $62 a year for the average taxpayer who owns a house assessed at $375,000. The total interest on a 15-year bond would cost $5.1 million.

• If the board opts for a 20-year payback, it would cost the average taxpayer $52 annually. Interest on a 20-year loan would be $8 million, officials said.

Architect Scott Spiezle explained that to make all the necessary repairs and upgrades individually was a “Band-Aid” approach to facilities management that would end up costing more in the long run.

Schools Superintendent William George said the work would have to be done with or without the referendum. Without the referendum, George said, the state would take its $12.9 million and walk away, leaving local taxpayers with the responsibility of coming up with the entire price tag.

The idea for the referendum grew from the state’s surprising approval of so many of the district’s requested projects, officials said. The district had earlier submitted Regular Operating District grant applications to the state Department of Education for 39 projects and all 39 were funded, officials said.

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