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Capital & Maintenance Plan (C&MP) » FAQs

FAQs

 

C & MP

Capital & Maintenance Plan 

 

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Frequently Asked Questions

 

FAQs will be updated with new questions and answers periodically. If you have a question, please email us at camp@millburn.org

question markWhat is a bond referendum?

 

A bond referendum is an election when a Board of Education seeks voters’ approval for funding to undertake capital improvement projects and to finance such projects through a longterm loan (a bond).

 

question markWhen is the bond referendum special election?

 

On January 28, 2020 there will be a Special Referendum Election to seek voter approval on a $20.5 million bond proposal. The bond sale will take place in February/March 2020 for construction to begin in summer 2020.



question markWhat is C&MP? Why do we need a bond referendum to fund these capital and maintenance projects?

 

The Capital and Maintenance Plan (C&MP) is the school district's long-term financial plan to provide for capital projects that are unable to be funded through the operating budget. Work and infrastructure continue to deteriorate as projects are postponed year after year, which ends up costing the district more through increases in the day to day maintenance and overall project/cumulative costs. It is a plan to finance reinvestment in District schools without increasing taxes. C&MP is a financial strategy to fund ongoing capital projects by issuing new bonds as existing debt expires, without increasing taxes.

  

question markHow was this decided?

 C&MP is a result of a board goal and a multi-year Board review of alternative funding methods for capital projects.   This is a mindset shift for the District’s project financing. The Finance and Building and Grounds have developed a robust longterm facilities plan and this will provide funding to fulfill those needs. Stakeholders - principals, parents, students, security experts, and our architects all had input on the facilities needs in our district.

 

question markDo other districts fund their projects this way?

Comparable districts who are successfully funding projects through refinancing of bonds are Princeton * New Providence * Lawrence Twp * Westfield * Randolph * Rumson-Fairhaven * South Orange-Maplewood

 

question markWhat are the advantages of funding capital and maintenance projects this way?

 

  • By funding through a referendum we have the opportunity to receive debt service aid from the state up to 40 cents on the dollar for eligible projects. These funds are only made available through issuing bonds, and is the only state aid currently available for facility projects. A majority of the projects have been approved by the NJDOE for debt service aid.
  • Bond rates are expected to remain at low levels so we anticipate getting a good rate on the bond sale.  

 



PROJECTS

 

question markWhat projects are being financed with referendum funding?

Proposed Capital Projects:

  • Security Vestibule Upgrades/Office Reconfigurations: High School / MiddleSchool / Deerfield /Glenwood / Hartshorn / South Mountain / Wyoming
  • New Cafeteria Addition: Middle School
  • Roof Replacements: Deerfield / Glenwood / Hartshorn / South Mountain
  • Window Repairs or Replacements: Wyoming / Washington
  • Exterior Door Replacements: High School
  • Stair Repairs:  Wyoming
  • Masonry Repairs, ADA Improvement: Middle School
  • HVAC/Roof Top Unit HVAC Replacements: High School / Middle School

 

 

question markWhat happens if the referendum doesn't pass? Will we be able to fund any of these projects?

If the referendum does not pass, we will have to scale back on some of the projects and try to find funds, over a longer period of time, to undertake them. There are some projects that we will probably not be able to fund, such as the Cafeteria addition and the vestibule addition at Deerfield.

 

 
 

 

question markIf the referendum passes, when will the MMS Cafeteria construction be complete? 

Construction of the cafeteria will begin in 2020, but will not be completed until the following summer, with the building opening in Fall 2021. 

 



question markOnce the cafeteria is built, will students still have to spend part of their lunch period in the auditorium?

 

The good news is the cafeteria addition will mean that students will no longer have to split their lunch period and sit in the auditorium. Students will have more time to eat and socialize with their classmates.



question markI understand that the district will not receive state aid for projects planned for Washington School? Why? Does that mean these projects will not take place?

 

We cannot get debt service aid for a building that has opened within the last 5 years. But, these important projects will still take place as part of C&MP. We will still pay for the Washington School windows and infrastructure projects with Referendum dollars.  

 




Funding/Finance Questions

 

question markIf you didn’t rollover the debt to purchase new bonds, but gave the money back to the taxpayers, how much would it be? 

 

Approximately $200 per million dollar assessed home value. 



question markIf the referendum passes and the work comes in under budget what happens to the difference? 

 

If the referendum passes and the work comes in under budget then the difference will be given back to the taxpayers through additional payments on the outstanding debt.

 

question markWhat happens if C&MP doesn’t pass?

 

The district will have to attempt to find alternative solutions to address repair/replacement of major systems.  However, as indicated above, the annual budget does not allow for addressing these or other facility concerns. The district may have to defer replacement or repair of systems and return to a cycle of delaying important projects. By having a long-term plan we can address these issues now through the referendum.  The issuance of bonds allows the district to capitalize on the debt service aid funding of up to 40% of eligible costs. 

 

question markDoes this mean we won’t have any more referendums in the future?

 

No, C&MP is a mindset shift to allow for periodic bond referendums to maintain a relatively stable debt level as existing debt matures. This special election means there will not be another C&MP referendum until the next debt maturity (2025).

 


VOTER INFORMATION:

question markWhy is the vote on January 28, 2020?


January 28 is one of five dates during the year when school boards may ask voters to approve school construction proposals. It is the earliest date the district In order to begin construction projects in Summer 2020, with a successful January vote we will be able to sell bonds and get construction bids in Winter/Spring 2020 to get the projects underway by the end of June. 

 

 

question markWho is eligible to vote on the referendum?

Anyone who is registered to vote in Millburn can vote on the referendum on January 28, 2019. To register to vote you must submit a Voter Registration Form on or before 21 days before the election (January 7, 2020). 

Get voter registration information here.



question markCan I vote by mail or do I have to go to the polls?

Yes, you can vote by mail in any election in New Jersey.  If you have voted by mail in the past, you will automatically receive a mail-in ballot for this election.  If you would like to apply to vote by mail in this election, you must submit your application by mail by January 21st, or in person by January 27.

Get Vote by Mail information here.