Attached is the presentation made to North Arlington voters and residents (Vikings Value, a Blueprint for the Future) by the NA Schools Superintendent and the North Arlington Board of Education (click here for PowerPoint Presentation).
This is an ambitious project by any standard that requires voter approval over a series of Capital Project questions since local school districts have no bonding capacity as individual units of government such as a municipality or county.
NA Today made an exhaustive study of the proposal and several questions need to be considered:
· The proposal speaks of 72 new residential units as part of the need for the QPHS acquisition into a new middle school. But not every type of housing unit will yield the same number of school children. Are these unit’s apartments, townhomes, or single-family detached homes? Could these units be Over 55 or senior housing? How does the BOE forecast new construction in what appears to be a pending national recession and potential housing downturn?
· According to the presentation, elementary school enrollment totals 905 while Middle School and High School populations account for 939. Where is the spike or anticipated spike in future school enrollments?
· The original Roosevelt School Expansion was forecasted at $9,000,000 for 11 classrooms or roughly $818,200 per classroom at $570 per square foot (15,782 square feet). The “fair market” value of QPHS according to the proposal is $8,659,000. Is there an appraisal of this property on file reflecting that value? A property that has never been assessed being owned by the Archdiocese of Newark. Does it really cost $818,200 to build one room at 1,435 square feet for new construction?
· The QPHS acquisition was $6,400,000 for 72,160 square feet or roughly $89.00 per square foot. That is a tremendous decrease in cost while purchasing 78.2% in additional square-footage. The question then becomes how much in upgrades and repairs are truly required to get this facility up and running as the new middle school operation?
· Capital Project #1: $35-$40 per month or $450 per year which would reflect a permanent increase in the Tax Levy
· Capital Project #2: $8 per month is $96 per year, another permanent increase in the Tax Levy
· Capital Project #3: $14 per month is $168 per year, another permanent increase in the Tax Levy
· Phase 3 Capital Costs is $9 per month or $108 per year
· Total Cost to Taxpayers: $822
· One of the major cost questions is the difference for Special Education in District versus Out of District expenses? Is there any evidence of any cost savings?
· The March 11th 2019 NA BOE agenda refers to three items to be considered in addition to the 2019-2020 school budget:
· $1,815,990 or a permanent increase in the school Tax Levy
· $709,305 for security staffing and an initial, permanent increase in the school Tax Levy (How many employees does this figure represent? Part-time or full-time? Will a Director of Security be necessary? Will this service be an outsourced expense to a third-party?).
· $780,290 for a full-day, Pre-K program or a permanent, initial increase in the school Tax Levy
· Total initial costs of these new services would be $3,305,585.
One question not addressed was if the Borough of North Arlington purchased the property instead and hired a developer and constructed say thirty (30) one-family homes at $500,000 per property or $15,000,000 in new ratable revenue?
If the schools receive roughly 60% of the overall Property Tax revenue, would have an alternative revenue generating plan been considered and was there a possibility of adding additional square footage to the existing facilities that would have avoided the initial, $6.4 million dollar cost?
This is an important proposal that demands a Town Meeting so that all the questions are answered and all the costs made known to those paying the bills, the North Arlington homeowner of which a large majority will not use or benefit from these improvements. Is there a strategy to reach these voters and monetize the value versus the cost?
Most importantly, what happens to the QPHS parcel if the referendum(s) are defeated at the polls?
Read the attached proposal carefully and feel free to contact the Board of Education at (201) 991-6800 to answer any questions you have.