FAQ's

Bond Referendum Questions

What is a school bond referendum election? 

A school bond referendum election is a vote held by a school district to seek approval from the community to borrow funds (through the issuance of bonds) for specific purposes related to school facilities, construction, renovations, or other educational projects.

Why does a school district hold a bond referendum election? 

School districts hold bond referendum elections to secure funding for significant capital projects that go beyond their regular operating budgets. These projects may include building new schools, renovating existing facilities, improving infrastructure, or upgrading technology.

Who is eligible to vote in a school bond referendum election in New Jersey? 

Eligibility to vote usually follows New Jersey's general election voter eligibility rules. Registered voters who reside within the school district boundaries are typically eligible to vote in a school bond referendum election. If you have moved from out of state, another county, or even within town, you need to re-register to vote.  October 17 is the deadline to register to vote in the November 7th General Election. 

What is C&MP? 

C&MP, is Millburn's Capital and Maintenance Plan, a long-term financial plan to provide for capital projects that can’t 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.

Why do we need a bond referendum to fund these capital and maintenance projects? 

The district is following a longterm plan to maintain a relatively flat debt level by issuing new bonds in place of existing bonds as they mature. As part of the January 28, 2020 special election referendum vote, voters approved bond issuances in 2020 and 2022.  Now as earlier debt expires the district is proposing a $12.9 million bond sale to fund a number of capital projects. 

What are the advantages to 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 be at levels equal to or less that the rates of the bonds that are expiring.

Do other districts fund their projects this way?

Comparable districts who are successfully funding projects are Princeton * New Providence * Lawrence Twp * Westfield * Randolph * Rumson-Fairhaven * SO-Maplewood

Funding/Finance Questions

What are the project costs?

•  Visual and Performing Arts Renovations:          $ 6,460,000

• Building Upgrades:                                                        $ 2,950,000

• District-wide Infrastructure Improvements:    $ 3,565,000

TOTAL AMOUNT:                                                               $ 12,975,000

How does the school bond referendum affect property taxes? 

Because the district is taking on the same amount of debt that is expiring, the referendum does not change the amount of tax that is due to debt, the debt levy. There will be no tax impact as a result of this referendum. 

If passed, the referendum projects will maintain the assets of the district, and therefore of the taxpayers.   

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

Approximately $120 per assessed home value of $1 million (12/month). 

What happens if the referendum doesn’t pass?

The district will not be able to renovate the high school auditorium and 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, which will not be available outside of a referendum. 

Does 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).

Is this referendum doing anything to prepare for an anticipated increase in new students as a result of the planned developments in town?   

The state does not allow a district to add space or build in anticipation of increased growth.  Districts may only do that when they can prove that they do not have enough space and have unhoused students.  At this time, we have enough room for our current population. This referendum does address infrastructure projects that will maintain our buildings and be prepared should we need to increase capacity in the future.