School Bond Sale Will Save Montclair Taxpayers Money, District Says

MONTCLAIR, NJ — A landmark wave of upgrades in the Montclair Public School District recently took another step forward with the first of a series of bond sales – and it’s expected to save local taxpayers some money, administrators say.

Montclair voters approved a $188 million school bond proposal by a landslide in the 2022 general election. It will pay for upgrades to buildings and schools throughout the township. Read More: Big Win For Montclair School Referendum On Election Day

At the time, Montclair school officials said that residents with a home valued at $628,952 will see an average annual tax impact of $732 until the bonds are repaid. But it may end up costing even less, administrators say.

Last week, the Montclair Board of Education discussed the results of a $70 million bond sale, the first of three that will take place in the district. Watch the meeting video here. See the full presentation here.

David Cantor, the district’s executive director of communications and community engagement, said that the district was able to secure an “AA-” long-term credit rating with S&P Global Ratings on the first series of bonds.

“Because the district secured a high-grade rating – attracting bidders – and sold the bond while rates were down, we were able to get a bid that is .68 points below our projection, saving Montclair taxpayers $5 million over the 20-year life of the bond,” Cantor said.

The first year's tax impact on the owner of an average Montclair home assessed at $628,952 will be $199, down from the $258 that was projected last year, Cantor said.

“Assuming the interest rates we projected last fall for the second and third bond sales, in 2025 and 2027 (at 4.5%, higher than the rate we've secured for this first sale), the average annual tax impact for the average homeowner over the 24-year repayment period of the three bonds would now be $714 — down from the $732 we projected in the fall,” Cantor added.

• See Related: Montclair School Referendum (How Much Would It Raise My Taxes?)

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