Lower our Debt Cost

The Debt of Holmdel stands at close to $35 million. We have recently earned a AAA rating. In order to lower the debt cost, we need to

a) Maintain the AAA rating and thus

b) Maintain the approx. $4 mill in reserves that the township needs to keep

c) Keep our spending in check to not increase the total amount of debt.

In comparison to The BOEs of other townships of NJ, the Holmdel Board of Education has about a $2.5 mill higher discretionary spend. If some of this was brought into check, it could result in either a lowering of our total debt and hence debt cost, some giveback in property tax or higher salaries or more regularization of teachers. All these need to be borne in mind.