Frequently Asked Questions
Frequently Asked Questions
Q: Why is the district considering a referendum?
A: The Manville School District is considering a referendum to address critical infrastructure projects that focus on improving the health and safety of students, staff, and the community. The proposed projects include security upgrades, renovations to offices, gymnasiums, band rooms, and repurposing spaces for better utilization.
The referendum allows the district to take advantage of New Jersey's Debt Service Aid, which covers approximately 49% of project costs, resulting in no tax impact for residents. The funding will be sourced from a combination of Capital Reserves and the Debt Service Aid program. These improvements are essential for enhancing safety, expanding opportunities, and supporting community needs.
Q: How is it possible that approving this referendum will not affect my taxes?
A: Approving the referendum will not affect taxes because the Manville School District plans to fund the projects using a combination of Capital Reserves and Debt Service Aid from the State of New Jersey. Under the Debt Service Aid program, the state reimburses the district for approximately 49% of project costs. This means Trenton contributes its share of tax dollars back to the district for these specific projects.
Additionally, the district is leveraging existing funds without increasing the tax burden on residents, ensuring a 0% tax impact for the community.
Q: What is a bond referendum?
A bond referendum is a vote to consider a public entity’s plan to borrow through the sale of bonds. Public school districts can sell bonds to generate funding and repurchase them with interest over time. In that way, bond borrowing is similar to how a homeowner might use a home equity loan to make improvements and pay that loan back over the years. Property taxes make payments on those bonds, so voter permission is necessary to sell them.
Q: What is debt service aid?
A: The State of New Jersey offers to fund districts under the Educational Facilities Construction and Financing Act (EFCFA) known as Debt Service Aid. All New Jersey taxpayers contribute to this pool of school improvement funds, but only districts with a voter-approved bond referendum benefit from it. Manville is eligible for approximately 49% in reimbursement of the costs of our school facilities projects. Meaning for every dollar spent, the state of New Jersey will pay roughly $0.49, and Manville will pay $0.51.
Districts must be proactive to leverage this type of state aid; it is not automatically allocated like annual state funding. Without a voter-approved bond referendum, this funding is left on the table for other districts that pursue bond borrowing. The local property tax would cover the entire cost of projects on the district’s Long-Range Facilities Plan.
Q: How come the District has all this money in its general funds? Shouldn’t that money have gone back to the taxpayers?
A: For many years, the Manville School District was dramatically underfunded and could not address many major capital projects. As the state aid has increased, the District has been cautious with its spending while improving academic programming and facilities and avoiding raising taxes. Through the general funds budget, the district was able to complete various projects, including major renovations to the MHS Auditorium, the Ned Panfile Stadium, the ABIS and MHS Media Center’s, classroom renovations, as well as, boiler and roof repairs throughout the district. This referendum will allow the community to continue its commitment to improving the district facilities through its general funds while taking advantage of the state’s Debt Service Aid program (49% of the project’s cost).
Q: If voters approve the referendum, when would the work begin?
A: Voter approval in March 2025 will allow the Manville School District to begin the bid and construction process immediately. Renovations begin during summer of 2025 and all projects will be completed by December 2026.
Q: Will we get a diverse pool of bids?
A: The referendum vote is the first of a multi-step process for the projects. Once all the project plans are finalized and have received state approval, the district will accept bids. These bids must come within the project’s budget. This is open public bidding, for which all qualified bidders are encouraged to submit. The bid is noticed in a legal ad in the paper and on the district’s website.
Q: Will the projects possibly go over budget?
A: The projects can not legally go over budget. The referendum represents the maximum total cost of all of the projects.