Referendum makes sense financially

LETTER

To the editor:
   While the price tag of $18.8 million looks huge, the SHRHS bond referendum may look like a pretty good financial deal in a year or two. Here is why:
   1 — The governor is kicking in $3.6 million of the 11.1 million cost of Question One, so the actual costs to us is "only" $7.5 million. A 32 percent discount is enough to get my attention. This state aid program is not guaranteed beyond this fiscal year, and could decrease or disappear. Of the overall cost of all three questions, the governor is kicking in $4.1 million, still 22 percent of the total cost.
   2 — Interest rates are as low as they are likely to get. This makes the cost of borrowing as low as it is likely to be for a long time. And every percentage point makes a substantial difference in the total paid over the life of the loan.
   3 — Construction costs are going up. This is probably always true. Estimates are that waiting one year will cost an extra million dollars.
   4 — Improving our schools benefits every homeowner in the area. Sub-standard schools hurt our property values. It has been said that new houses go for up to $80,000 less in our area than they would if they were in the Hunterdon Central district. The old saying that property values depend on "location, location and location" might as well be "schools, location and location" when it comes to family homes.
   5 — Low-income seniors will not be hurt — a recent state law allows seniors with incomes below $18,151 ($22,256 if married) to have their property taxes frozen at 1997 levels. (Call NJ Division of Taxation at 1-800-882-6597 for details).
   I don’t like higher taxes any more than the next person, but I can recognize a deal when I see it. These improvements need to be done, and circumstances are such that we can get a substantial discount (thanks to Trenton). And we can borrow at interest rates we probably will not see again for years (thanks to the Fed). This combined with rising costs of construction makes this the right time to make our move.
   And I like it that seniors do not have to foot the bill — I know many seniors I talk to want to support the schools but just cannot afford higher taxes. They voted to build South in the first place — now it is time for us to bring it up to date, and make it into a school our area can be proud of, and which will benefit our children and our entire community. Five years from now we may look back and be very happy with our financial foresight.
Robert Dahl

Lambertville