NBTSchools Bond Referendum
Vote March 11, 2025 (2-8pm) or by mail in ballot.
Why is Spring 2025 a unique opportunity for this school bond referendum?
We have significant needs now that can be met with a zero tax increase at this time. The school district has been making payments on prior debt that is now maturing. In essence, voters have the opportunity to grant permission to allow funding allocated to the matured bonds to be reinvested in the new work. The school district has been approved for significant State Aid to offset the cost of the improvements. The combination of those two circumstances makes it possible for there to be no increase to North Brunswick taxpayers for this referendum. The bonds will be issued on a tax-exempt basis, which means that interest on the bonds is exempt from federal and state income taxes keeping the interest lower than rates that an individual could receive for other debt, such as a home loan. The actual rate will be set at a competitive bond sale after the bonds are approved by the voters. If rates go lower, we will have the opportunity to refinance them at lower rates later.
There is no guarantee that rates will be lower if we delay the bond sale. Also, if we wait for another time, there is no guarantee that there will be a zero tax increase to the taxpayer. The cost of goods/labor could inflate, and the state debt service aid might not be available. And, if one of the major systems fails in the meantime and we have not issued bonds to pay for it, we will be responsible for 100% of the cost.
