The Hopewell Valley Regional Board of Education voted Monday to authorize the form and sale of $84,235,000 in school bonds, the next major step toward implementing the facilities referendum approved by voters last month. During the discussion, district administrators and financial advisors outlined how the sale will work, why they chose a single issuance, and what the timing means for taxpayers.
Business Administrator Robert Colavita explained that the resolution enables the district to secure the financing needed to begin work on the three-year construction plan. “The next thing we need to do is actually get the money to build all these things, and that’s what this resolution you’re passing tonight is,” he said.
Colavita told the Board that the district plans to sell the bonds on January 22, and that administrators opted for a single sale rather than multiple issuances. After extended evaluation, he said, the one-sale approach “provided a certain amount of benefit to the district, namely being able to defer a good portion of the first year’s payment and also some of the second year’s payment to provide tax relief to the local community.”
Colavita invited Robbi Acampora, the district’s financial advisor from Phoenix Advisors, to explain how the sale will proceed and how interest rates factor into the projections. Acampora noted that borrowing conditions have improved since the original referendum analysis. “We’re going to sell $84,235,000 in bonds… The interest rates have dropped since we did our projections for the tax impact,” she said.
She also reviewed comparable bond sales and emphasized that the final rate will not be known until bids are opened. “I don’t know until January 22 what the rate is going to be… last week two comparable sales were a 3.79 and a 3.78,” she told the Board.
Acampora explained that because construction spending will ramp up gradually over three years, the district is expected to earn substantial interest on bond proceeds during the early months. Those earnings, she said, “should cover the first year and part of the second year” of debt service.
Colavita added that early investment earnings will be incorporated into the 2026–27 budget planning cycle. Selling all bonds at once also positions the district to maximize interest during periods of low expenditures. “All signs are pointing upward, and the fact that we’re selling all the bonds now enables us to earn that interest during this winter period where we’re not going to be doing much spending at all,” he said.
The bonds will finance the voter-approved upgrades across all six district schools, including HVAC replacements, safety improvements, roofing work, and other major repairs, with early construction expected to begin this summer. The referendum also included major additions at Bear Tavern Elementary and Toll Gate Grammar School.
HVRSD Receives Clean Audit, Reports Strong Financial Position
The Hopewell Valley Regional School District ended the 2024–25 fiscal year in a strong financial position, receiving a clean (“unmodified”) audit opinion and reporting $14.97 million in total fund balances as of June 30. Business Administrator Robert Colavita presented the results at the Dec. 15 Board of Education meeting, walking the Board through each account and how state law requires the district to use those funds.
“We again received an unmodified opinion, which makes me very happy. It means everything’s on the up and up and we’re doing well. Our financial statements clearly represent what we’re doing,” Colavita said during the presentation.
The audit, conducted as part of New Jersey’s annual financial oversight process, found just one minor recommendationinvolving student activity accounts to make sure money is being deposited more quickly, and no issues in administrative practices, payroll, purchasing, or facilities management.
Breaking Down the District’s $14.97 Million in Fund Balances
A slide presented during the meeting — which matched the Annual Comprehensive Financial Report (ACFR) — detailed the district’s fund balances. Colavita spent several minutes explaining what each category means, what it can be used for, and what restrictions apply.
Here is the full breakdown:
- Encumbrances — $735,744 Encumbrances are commitments already made — purchase orders issued before June 30 that were not yet paid.
“It’s not money that’s available to spend — it’s already been committed,” Colavita said. - Additional Surplus Already Budgeted for 2025–26 — $2,726,312 This amount is built into the current year’s budget as revenue.
- Excess Surplus Required for 2026–27 — $971,109 New Jersey caps how much surplus a district may carry. Anything above 2% must be used in the next budget year.
“We are putting this money towards tax savings to the public… this must be budgeted in the next fiscal year,” Colavita said. - Maintenance Reserve — $100,369 Restricted for repairs.
“$100,000 doesn’t go very far, but we could take that to do a repair,],” he noted. - Capital Reserve — $7,636,516 The district’s long-term savings for facilities needs. Audit notes show the account earned $287,437 in interest.
- Allowable Surplus (Rainy-Day Fund) — $2,796,585 This is the district’s true emergency account.
“The amount of money that’s truly our emergency bank account is $2.8 million… That last number is what truly is our rainy-day account,” he said. - Total Fund Balances — $14,966,635
One Minor Audit Recommendation
Auditors issued one recommendation involving student activity accounts to better help with timing and how that money is deposited.
“They like to collect all of them and then bring them to the office… but while they’re waiting the three or four weeks, the checks we got at the beginning are now not making the 48-hour deposit,” Colavita said, noting that changes to the system are already being implemented so this doesn’t happen anymore.
Why the Audit Matters
The annual audit plays a significant role in New Jersey’s system of district oversight.
New Jersey evaluates every school district through the Quality Single Accountability Continuum (QSAC), the state’s monitoring system that reviews performance in instruction, fiscal management, governance, operations, and personnel. Districts must meet or exceed state benchmarks to maintain high-performing status and remain under local control, and the annual audit is one of the most significant components of the fiscal evaluation. As Colavita noted, the audit accounts for about 60% of the district’s fiscal QSAC score, making the clean opinion an important part of statewide accountability.
Colavita praised district staff across all offices for ensuring a smooth process.
Board honors retired facilities manager
The meeting opened with an appearance by Tom Quinn, who returned to the board room after retiring at the end of last month. Business Administrator Robert Colavita said the board wanted the chance to thank him in person.
“So the board wanted you to come and thank you one last time for your service to the district. Tom retired at the end of last month, and the board wanted to give an opportunity to say goodbye to Tom. So thank you, Tom, for all the service that you gave to the district,” Colavita said.
Board members reflected on Quinn’s impact, especially his steady leadership through facilities challenges. Board President Anita Williams Galiano thanked him for answering emergencies at all hours and for his creativity in solving problems.
“It really is important to have a moment to just look at you not on the zoom screen, but in person and just thank you for the tremendous amount of hours… and the contacts that you were able to reach out to when you were missing one part from that very important something unit that needed to be, you know, fixed. And so we are forever grateful, and your retirement is well deserved, and you will most certainly be missed,” she said.
Superintendent Dr. Rosetta Treece added that Quinn will be back again when the district formally honors all of its retirees later in the year. “We’re going to have plenty of opportunities that embarrass Mr. Quinn, and he will come back,” she said.
Board Honors Dr. Mike Wilson as Term Concludes
The meeting also included a heartfelt farewell for Dr. Mike Wilson, whose Board term ends this month. Superintendent Dr. Rosetta Treece thanked him for his service:“You have just dedicated your life to children and really taking care of the whole child… I know you’re going to continue your work, and you’re still going to be holding our feet to the fire as you should,” she said.Board members echoed her appreciation in their closing comments.
