Tower The Masters School
May 31, 2013
Volume 69, Number 7
The Masters School, 49 Clinton Avenue, Dobbs Ferry, NY 10522
Bonds to build: School sells bonds in order to finance new CAAC by Noah Buyon
Web Editor-in-Chief Emeritus
It is no secret to students and faculty alike that Masters is in a state of flux. The most obvious sign of impending change is the tentatively named Community Athletics and Arts Center, a three-story annex that is set to transform the Masters campus and its curriculum. Construction of the $25 million complex is scheduled to begin immediately following graduation, even though only half that amount has been raised as of now. To help bridge that gap, Masters is turning to a process that, while most commonly associated with the likes of Citibank and the U.S. Government, is standard practice for private high schools: selling bonds. A bond is a line of credit; buying a bond means lending money to the institution that offered the bond in the first place with the promise of being paid back with interest. The sorts of bonds that nonprofit schools like Masters can issue are not only tax-exempt but also sanctioned by the government.
In 2002, Masters sold 17.5 million dollars in bonds through Westchester’s Industry Development Agency (IDA) and Allied Irish Bank as part of “The Masters Advantage” campaign. Those bonds help fund the construction of the Middle School, Morris Hall and faculty housing on the hilltop. They also went towards covering the costs of renovating the school’s classrooms and more dated facilities. Even as of 2012, Masters owes around $14.5 million from that bond issuance (according to public 501(c)(3) IRS data). Masters is considering a new approach to bonds this time around. Head of School Maureen Fonseca said, “Today the economics of [selling bonds] are complicated what with the recession. We had to do a comprehensive review of the school’s credit, and upon looking at the budget, we began to look at using the rating agency Standard and Poor’s (S&P).” S&P’s role is to evaluate the school’s ability to pay back borrowed money (or credit worthiness)
Image courtesy of Tim Kane
THE SCHOOL WILL ISSUE tax-exempt bonds in order to finance the Community Athletics and Arts Center (CAAC), which is a $25 million project. The building will feature a swimming pool, a fencing room, multiple basketball courts, an experimental theater and a digital media lab.
by giving it a rating from “AAA” to “C”. A high rating would make any bonds offered by Masters much more attractive to prospective buyers. The school has not yet received a letter rating. Fonseca described the S&P’s evaluation process as being remarkably encompassing. The company took a panoramic snapshot of Masters, evaluating diverse aspects of the
school such as admission and enrollment trends, academic offerings, faculty recruitment and retention rates, community history, college acceptances and crossovers with comparable private schools in the area in addition to the obvious financial data. Fonseca reported, “We [the administrators and I] presented our own review to S&P in a four or five hour interview, in which we
had to field questions from them. They also toured campus to see our facilities.” Though Masters has not yet received a letter rating, the school expects to issue approximately $32 million in tax-exempt muni bonds through the Dobbs Ferry Local Development Corporation which will be sold to a bank. She continued, “There are two parts to the vision for the community going
forward. The first is brick and mortar: to complete the Community Athletics and Arts Center in order to round out our facilities. The second is to grow our endowment. We expect to be in a much stronger position in terms of both in the years to come.” The question of how much of a role the sale of bonds will play in achieving that vision remains unanswered.
Writer and comedian Andy Borowitz chosen as graduation speaker by Abigail Costigan Sports Editor
Now this is the story all about how my life got flipped, turned upside down and I’d like to take a minute just sit right there. I’ll tell you how I became the prince of a town called Bel-Air. Andy Borowitz, the creative force behind this iconic sitcom, will be speaking at commencement for the Class of 2013. The father of senior Max Borowitz ‘13 and Lexi Borowitz ‘07, Andy has an extensive list of credentials
as a comedian and author. Most notably, he created the The Fresh Prince of Bel-Air with Max’s mother, Susan Borowitz. In addition, he has written numerous books and currently runs “The Borowitz Report,” a satirical news column, for The New Yorker. Additionally, Andy has had a fair share of experiences with public speaking, including stand up comedy. Max nominated his father after classmates suggested the idea. Soon after, the senior class selected him to speak. Andy didn’t know that he
had been nominated by his son until senior Sean Coffey mentioned it to him.
“Evidently, he’s got a really good sense of humor and a good
Photo courtesy of Max Borowitz
Comedian Andy Borowitz WILL SPEAK at the 2013 commencement. He is the father of senior Max Borowitz and Lexi Borowitz ‘07.
personality,” Max said. “I trust that he’ll bring that to the table and be a success.” Andy added, “I am very well-informed as a result of all the time I have spent on Yahoo Answers.” When asked what he plans on saying in his speech, Andy said, “I’d be able to answer that better if I’d already written it. I plan on pulling an allnighter the night before graduation, so call me at 3 a.m. and I’ll probably have a much better idea.” However, he did hint that the speech will include a dubstep dance
Opinion
Features
Sports
Why can’t we clean up after ourselves?
Class of 2013 departs for college
Spring track ends season strong
Page 5
Photo by Declan Considine
Pages 6 & 7
Photo by Nicolas Graziano
Page 12
solo and freestyle rap Due to Andy’s busy lifestyle and personal commitments, however, Max said, “This will probably be one of his last speeches. He’s a busy dude. My three year old sister and his other work takes up most of his time.” It’s safe to assume that this year’s commencement speech will leave no one short-changed. Andy said, “I think Winston Churchill said it best when he said, ‘My only regret is that I never spoke at Masters graduation and spoke at Rye Country Day instead.’”
Photo by Bob Cornigans