“The Board of Education always places the interest of our taxpayers first as demonstrated by our past investments to ensure local educational excellence,” said Board President Victoria Flynn.
HOLMDEL, NJ - The Holmdel Township School District met Tuesday night to discuss curriculum and as well as labor and personnel. The new format, called Committee of the Whole, brings all members of the Board of Education together to discuss matters that previously were managed in separate subcommittees. On this evening, an emergent topic arose related to an Executive Order passed by Governor Murphy. Murphy, late on Tuesday, allowed the current property tax deadline of May 1 to be extended to June 1.
The action was designed to provide additional temporary cash flow to residents. Critically, the order did not contemplate the fact that county and school payments deadlines were not affected. The flaw in the Executive Order created a situation that the leadership of Holmdel Schools quickly addressed during their meeting.
In a news release Wednesday, the schools announced that the Holmdel Township School District has agreed to delay a portion of its scheduled $5.9 million tax payment to allow the Holmdel Township Committee to extend the May 1 property tax deadline until June 1.
"Under the proposal accepted by the Board of Education, the Township will submit $3 million to the School District on May 1, while delivering the balance of the monies due by June 1. The Township Committee made the request after New Jersey Governor Phil Murphy issued an Executive Order that allowed municipalities in the state to extend the grace period for taxpayers." the release stated.
“The Board of Education always places the interest of our taxpayers first as demonstrated by our past investments to ensure local educational excellence,” said Board President Victoria Flynn. "The Board recognizes that many local property tax owners are feeling a cash crunch right now, because of the economic strains associated with efforts designed to slow the spread of the coronavirus in the state.”
“Fortunately, the School District is fiscally sound, and we have the financial resources in place to allow the Township to delay a portion of the final payment of our fiscal year,” added Dr. Robert McGarry, the School Superintendent. “We welcome opportunities to collaborate with the Township for the benefit of our residents in times like these."
The Holmdel School Board’s action will allow the Township to avoid issuing costly Tax Anticipation Notes, eliminating an added expense for local taxpayers. These expenses could include financing costs of approximately $10,000 in professional fees as well as interest costs and a potential difficulty in locating a bank that would be willing to participate for such a short duration. Even with the delay, the next quarterly payment would remain due on time in Holmdel and elsewhere.