Initial Referendum Repair Bids Lower Than Anticipated

Bids for infrastructure repairs and upgrades to Fort Lee schools approved by voters earlier this year are coming in under budget so far, according to the school district’s business administrator.

Cheryl Balletto presented a report Monday at the Fort Lee Board of Education’s regular business meeting, saying that the first round of bids for boiler repairs and other projects were about $1.7 million lower than what the district had budgeted for.

“We can have change orders moving forward, but the original round of bids are coming in lower, which is what we were hoping for by having this bond referendum in these economic times,” Balletto said.

In January, , authorizing the school district to raise funds through the sale of bonds to finance boiler replacements, roof replacements, science lab renovations at and , masonry repairs and other infrastructure renovations across the district that school officials emphasized were “critical.”

Attorney Lisa A. Gorab, the school district’s bond counsel, also said Monday that by selling bonds through the Bergen County Improvement Authority (BCIA), as opposed to competitively, the tax impact, which school officials previously estimated at about $103 a year for the average homeowner, will be lower than anticipated.

Gorab said the BCIA offered to sell the bonds with a triple-A rating instead of the borough’s Aa2 rating, which ultimately results in a lower interest rate.

“The difference in interest is substantial,” Gorab said. “We estimate it to be about $500,000.”

She added that she also expected the life of the bonds to be shorter.

“You anticipated selling bonds for 25 years,” Gorab told the board. “We think we can shorten that up a little bit with the better interest rates, sell bonds for a shorter term and still be under the estimated tax impact.”