Tax Increase Coming In Holmdel BOE Budget, Despite Efficiencies

HOLMDEL, NJ — Board of Education taxes will rise again this year, but the district reported in a budget presentation that it's also found many efficiencies - and hopes to find revenue in the future from developers' PILOTS.

Those PILOTS - or payments in lieu of taxes - are expected to be about $7 million this year alone from Bell Works, the Township Committee said in its state of the township address last week.

And Board President Terence Wall restated to the board - as he stated last week to the Township Committee - that the school district will be facing tougher budgets ahead and needs a share of the PILOT monies both from Bell Works, which he said has provided more than $26 million over several years, and from the future development of the Vonage and Nokia sites in the township.

He asked rhetorically: Why do people want to move to Holmdel? The answer is one word, he said: the schools.

"It's the schools, the schools and the schools," Wall said at the beginning of the meeting March 20.

For this year, the administration's preliminary budget - approved by the board - calls for an estimated annual tax increase of $356.50 per year or $29.71 per month on the average residential assessed value of $964,401, administrators said. What you will pay in taxes will vary depending upon the valuation of your home.

Here's the 2024-2025 breakdown, according to the presentation:

• General local property taxes must raise $61,591,955, up from $59,041,186 last year or $2,550,769 - 4.32 percent.
• However debt service was $2,453,774, down from $2,474,537 last year, or a decrease of $20,763.
• So the total amount of property taxes to be raised (with debt service) is $64,045,729, up from $61,515,723 or $2,530,006 - an increase of 4.11 percent.
• The increase represents an estimated total tax rate of $1.0749.
• The total tax levy increase equates to an estimated annual tax increase of $356.50/year or $29.71/month on the average residential assessed value of $964,401.

The presentation by Superintendent Dr. J. Scott Cascone and administration staff depicted a balance between making investments in the district and finding efficiencies.

"Fortunately, the district's prudent fiscal management in past school years has allowed us to utilize banked cap resources effectively while also streamlining operations, notably in transportation and staffing. This prudent approach has enabled us to develop a budget that balances fiscal responsibility with continued investment in programming," Cascone said.

Here are some of the areas the district was able to pare down:

• Flat departmental and school based budgets.
• Staffing efficiencies realized through attrition.
• Ongoing energy conservation program.
• Utilization of grants/additional revenue stream.

Also, the budget indicates student transportation costs have decreased by 10.95 percent over last year, an indication of improving fuel prices since the post-COVID highs.

One extra resource will be an allocation by the Township Committee, approved last week, to pay $300,000 for special officers for school security.

That's the first time the town is fully taking over that cost, which Mayor Rocco Impreveduto said is something the town should do. That will free up those funds for other needed school initiatives.

The township is also splitting the costs of the installation of lights going at new turf fields, and is studying a capital project that would fix the intersection at the high school.

State aid increased this year, the budget noted: Aid was $5,135,133, compared with $4,725,189 last year for an increase of $409,944 or 8.68 percent.

Whether future monies from PILOTs would be on a project-by-project basis or a revenue sharing basis remains to be seen, but President Wall said state law does permit revenue sharing and other districts, such as Cranford, have engaged in that method.

In terms of other expenses, Cascone said the cost of tuition for the specialty academies of the Monmouth County Vocation School District is roughly $840,000, not including transportation.

There are currently 106 Holmdel Students grades 9 to 12 attending vocational schools, according to the presentation. Last year, there were 33 applications to the county district, with 23 attending. This year, out of the 54 students who applied, 33 students were accepted into the county district.

It remains to be seen how many will accept, he said, but enriching the Holmdel High School's offerings is a way to retain Holmdel students in Holmdel, he said.

He noted that Holmdel's music program is one such attraction for students to continue at Holmdel High School.

Other expenses include salary contract increases for staff and health insurance costs:

The line item "Personal Services-Employee Benefits" that includes health, FICA, pension, Workers Compensation and tuition reimbursement, increased by 9.58 percent over last year, according to the presentation.

But despite these challenges, investing in the district academically and keeping class sizes small are priorities, Cascone said.

Here are some other academic investments cited in the presentation:

• Highly qualified staff who are credentialed to teach 17 dual enrollment courses.
• Continued expansion of Open SciEd in grades 6 to 8.
• Five new courses at Holmdel High School, including statistics and probability with applications, entrepreneur experience, Rutgers Anatomy and Physiology Lab II, Certified Patient Care Technician and Assistant Program, and Freshman Writing Lab 1.
• Instructional technology/platforms to promote success in Advanced Placement courses.
• Additional reinforcement for students enrolled in Math 7, Math 8, HS Algebra I.
• Additional courses at Satz and Holmdel High School for targeted writing support.
• Complimentary AP testing fee waived for up to two courses per student.

The final state-approved budget will have a hearing at a future date in April, Cascone said.

"Looking ahead, both the Board of Education and administration acknowledge the need for ongoing innovation and thorough analysis in our fiscal strategies. These efforts are crucial for navigating challenges while preserving the district's esteemed reputation and enhancing opportunities for our students," he said.

You can see or read the full presentation on the district website.