PARSIPPANY – The Parsippany Board of Education requests area residents to attend the next Town Council Meeting on Tuesday, December 5 at 7:00 p.m. located at Parsippany Municipal Building to hear more about the financial details of the latest PILOT arrangement.
Top Ranked Schools Keep Home Values High
- Parsippany-Troy Hills School District high schools rank in the top 19% of all New Jersey high schools and in the top 12% of all high schools nationally.
- These high rankings are possible through the 63.5% share of the township taxes collected through the Township of Parsippany.
- On average, each student costs approximately $21,800 annually and to sustain the high rankings of all our schools. Any additional students we welcome through new residential development will require funding as well. Without those taxes, our existing and new students will suffer, and Parsippany-Troy Hill will become a less desirable place to live which will cause a decrease in home values.
PILOT Brings More Students Who Need More School Funding
- The PILOT agreements the Township of Parsippany has recently approved include 410 new residential units.
- Historically, there has been an average of 0.4 students enrolled through each such unit, so this new development is expected to bring 164 additional students to the schools resulting in the need for an additional $3,575,200 in funding just for basic educational services.
- PILOT agreements that do not include clear revenue-sharing agreements with the Board of Education create a situation where the school district is obligated to educate these new students with no additional revenue to offset those expenses. Absent this revenue-sharing, the Board of Education will need to ask the taxpayers to increase their taxes.
With PILOT on Residential Developments, Developer and Township Win While Schools Lose
Based on financial details provided by the Township of Parsippany,
- Over the agreed upon 30-year period, the latest PILOT agreements will bring $47 million in PILOT payments to the Township instead of the original $25 million in taxes expected without the PILOT agreement.
- Why would the developer agree to pay this extra $22 million? Because in exchange, the developer will not have to pay $89 million in taxes on their improvements (buildings) on their site.
- Without the taxes from the improvements, our schools will not receive $57 million in funding, the municipality will not receive $25 million, and the County and Open Spaces will miss out on a combined total of over $7 Million.
The Board of Education is NOT in favor of any PILOT agreements for residential development, especially without written, signed agreements that clearly define the fiscal compensation to the school district. The Board of Education will meet with the Mayor to start the process of ensuring that the schools have adequate funding for new students arriving as a result of residential development.
Be informed and speak up so our students and your home values don’t suffer.
In advance of the Town Council Meeting on Tuesday, December 5 at 7:00 p.m. located at Parsippany Municipal Building, 1001 Parsippany Boulevard, please review the PILOT program and financial information click here.
