Denville, the Educational Services Commission of Morris County and the Township of Brick in Ocean County are the latest entities to use the Morris County Improvement Authority in financing critical projects resulting in tax savings for their residents.
The bonds are guaranteed by Morris County’s Aaa rating, which enables all participants to benefit by achieving the lowest possible interest cost.
“The benefits of using the Improvement Authority are savings to the taxpayers,” said Morris County Freeholder John Inglesino.
Denville is utilizing the Improvement Authority to borrow approximately $13 million, most of which will be used to help finance the renovation of the township’s municipal building.
Denville’s transaction also includes the purchase of capital equipment and the rolling over of existing short term debt.
The Educational Services Commission, which provides a variety of services to schools in Morris County including transportation and special education programs, is borrowing $1.5 million through the Improvement Authority for vans and buses.
The ESC recently saved more than $1 million when it financed $5.5 million worth of improvements to its facilities through the Improvement Authority, according to Angelo Vilardi, superintendent of the commission.
“Using the Improvement Authority was easy and provided savings to the schools that pay for the commission’s services,” Vilardi said.
Brick Township, the first out-of-county town to use the MCIA, is borrowing $4 million to finance public works and other capital equipment.
The Improvement Authority was established in 2002 by the Morris County Freeholders to give towns and school boards an innovative method of funding public projects and saving tax dollars at the same time.
Under state law, improvement authorities have more flexibility in financing and issuing bonds.
By using the Improvement Authority to finance such projects as equipment and vehicle purchases or leasing and even school and municipal construction, local officials will be able to spend fewer dollars and reduce the property tax burden on their residents.