Pennsville School District Bond Referendum 2008
District Office
30 Church Street
Pennsville NJ 08070
856-540-6200

Superintendent Dr. Mark Jones
E-mail: mjones@psdnet.org

District Information Line: (856) 540-6200 x 1118

The Pennsville School District Board of Education is preparing for a bond referendum scheduled to go before voters on September 30, 2008. To provide facts about the proposed referendum, the district has developed this fact sheet. As the need arises, the fact sheet will be updated to ensure that residents’ concerns are addressed in a timely and comprehensive manner.

The Pennsville School District Board of Education welcomes your questions and/or comments via email, phone, or in person.

Web site: www.psdnet.org

E-mail: mjones@psdnet.org

District telephone information line: (856) 540-6200 x 1118

Overview

The Pennsville School District is comprised of three elementary schools, one middle school, and one high school as well as the district administration building.

Community efforts to establish the need for a district-wide facility upgrade began in June 2004 with a series of town meetings. In September 2005, a 40-member, community-based task force kicked off an 11-month effort to verify and validate the need for upgrading existing academic facilities within the district. In developing this initiative, the group toured facilities throughout the district and in other local communities. They also adapted research on comfortable learning environments to the district’s needs based on findings presented by Remington & Vernick Engineering & Gibson Tarquini Group.

In August 2006, the task force presented the Pennsville Board of Education with a unanimous recommendation to the board of education for the development of a bond referendum.

Frequently Asked Questions
Addendum

September 08 Addendum
TO DOWNLOAD PDF of Addendum click
 

This Fact Sheet Addendum provides details regarding the financial aspect of the upcoming September 30, 2008 referendum.  The questions and answers below describe the structure of the bond question, tax impact, senior tax programs and other details surrounding the financing of this referendum.

If you require more detail or have additional questions, please use the resources listed below to obtain your answers.

The Pennsville School District Board of Education welcomes your questions and/or comments via email, phone, or in person.

Web site: www.psdnet.org

E-mail: mjones@psdnet.org

District telephone information line: (856) 540-6200 x 1118

Tax Impact Information

Q1.       What is the total dollar amount we will vote on, and how will my property taxes be affected
if the referendum passes?

The bond referendum will be presented in two questions, or bond proposals. Proposal I is specific to the proposed additions and renovations to Pennsville Memorial High School. Proposal II addresses educational adequacy and health/life safety renovations at Pennsville Middle School and the elementary schools. Proposal I must be approved in order for Proposal II to be approved.

The State of New Jersey has committed to pay 34.60% of the debt service costs toward the issuance of $41.5 million of bonds to finance the cost of the improvements for both proposals.  Pennsville residents would be required to finance the balance of these costs, or 65.40% of the debt service costs.  Currently, the board of education is anticipating issuing the bonds for a 25-year term at an annual interest rate of 4.85%.  Should both proposals pass, the anticipated tax impact is $0.23 per $100 of assessed property value.   

The district has prepared estimates based on the commitment letter received from the state.  The chart below outlines the tax impact of the proposed referendum.

State Taxation Site

*These costs are based on 25-year bond; an average assessed home value of $125,000; and an interest rate of approximately 4.85 percent.

Q2.       Referendum Proposal I has $1,024,452 of so-called ineligible costs in the high school; what makes these costs ineligible? What is the tax impact of these ineligible costs?

The New Jersey Department of Education determined that the two renovated home economics rooms and the renovation of two of the three music rooms are not considered eligible space under the facilities law; consequently, these improvements are not entitled to state aid. 

The board of education, however, has decided that the proposed added and renovated space in the high school is essential for providing a comprehensive program in home economics and music.  In addition, the relocation of these classrooms decreases the movement of students across the street and enhances overall security for the student body by securing entries and exits, so movement is contained within the building complex.

The tax increase of these ineligible costs equates to $11.32 annually on the average assessed home of $125,000 (or an annual increase in the school tax rate of $.0091 per $100 assessed value).

PROPOSAL QUESTION

Q3.       Why will there be two questions on the ballot?

The board of education separated the improvements into two proposals to provide voters with a choice about the improvements.  And while the voters will vote on each proposal separately, the proposals are contingent on each other: Proposal II is contingent upon the Proposal I being approved.  In other words, Proposal II can only be approved if Proposal I is also approved by the voters. 

Q4.       How will the two proposals and the interpretative statement appear on the ballot?

TAX PROGRAMS FOR SENIORS

Q5.       Are there programs available for senior citizens to offset the tax increases of a proposed referendum?

The Property Tax Reimbursement Program reimburses eligible senior citizens and disabled persons for property tax increases. The amount of the reimbursement is the difference between the amount of property taxes that were due and paid in the "base year" (the first year that you met all the eligibility requirements) and the amount due and paid in the current year for which you are claiming the reimbursement, provided the amount paid in the current year was greater. You must meet all the eligibility requirements for the base year and for each succeeding year, up to and including the current year to qualify for the reimbursement.

Income eligibility limits for the Property Tax Reimbursement Program have been increased for tax year 2007. As a result, you may be eligible for a reimbursement for 2007 even if you were not eligible in prior years because your income was above the previous limits.  Eligible applicants must file the 2007 Property Tax Reimbursement Application on or before the extended due date of October 31, 2008. The original due date was June 2, 2008.

Eligibility Requirements (first time filers)

You may be eligible for a reimbursement of the difference between the amount of property taxes you paid in the base year (the year you first became eligible) and the amount paid in the year for which you are applying for a reimbursement if you met all the following requirements for the base year and for each succeeding year, up to and including the year for which you are claiming the reimbursement.

1.       You are age 65 or older or receiving Federal Social Security disability benefits; and

2.       You have lived in New Jersey continuously for at least the last 10 years, as either a homeowner or a renter; and

3.       You have owned and lived in your home (or have leased a site in a mobile home park on which you have placed a manufactured or mobile home that you own) for at least the last 3 years; and

4.       You have paid the full amount of property taxes (or site fees if you are a mobile home owner) that were due on your home for the base year and for each succeeding year, up to and including the year for which you are claiming the reimbursement; and

5.       You meet the income limits for the base year and for each succeeding year, up to and including the year for which you are claiming the reimbursement.

Residents applying for the 2007 reimbursement must have total income for 2006 that is less than $43,693 for single applicants and $53,576 (combined income) for married couples, and total income for 2007 that is less than $45,135 for single applicants and $55,344 (combined income) for married/civil union couples.

For more information on the filing of the Property Tax Reimbursement, or to obtain an application, contact the New Jersey Property Tax Reimbursement Hotline at 1-800-882-6597. Information about the Program is also available on the Division of Taxation's Web site at http://www.state.nj.us/treasury/taxation/.

ADDITIONAL INFORMATION

Q6.       When will the Pennsville School District referendum take place?

Voters will be asked to cast ballots on Tuesday, September 30, 2008.

Polls will be open from 12:00 p.m. to 9:00 p.m. There will be nine (9) polling locations throughout the district.

Dist. 1 – Deepwater Fire House                           Dist. 6 – Queen of the Apostles Parish Hall

Dist. 2 – St. George’s Church Hall                       Dist. 7 – Senior Community Center

Dist. 3 – St. George’s Church Hall                       Dist. 8 – Queen of the Apostles Parish Hall

Dist. 4 – Pennsville Fire House                            Dist. 9 – Queen of the Apostles Parish Hall

Dist. 5 – Pennsville Fire House

Q7.       Where can I get more information?   

q       Look for information sent through the mail, including special referendum editions of The Communicator.

q       Attend Board of Education meetings and/or presentations throughout the community. Board meetings are conducted at 6:30 p.m., unless otherwise noted, on the last Monday of the month.

q       Attend the special Public Meeting to be held on Thursday, September 25, 2008, at the Pennsville Memorial High School auditorium.  Tours begin at 6:30, and the information session commences at 7.

q       Attend a Back to School Night Session to see the plans and meet school board members and school officials with information about the proposed plan:

o        Tues. Sept. 9.                      Penn Beach, 96 Kansas Rd.

o        Wed. Sept. 10                     Central Park, 43 Oliver Ave.

o        Thurs. Sept. 11                    Pennsville MS, 4 William Penn Ave.

o        Tues. Sept. 16                     Valley Park, 63 Mahoney Rd

o        Thurs. Sept. 18                    Pennsville HS, 110 S. Broadway

q       Call the Referendum Information Hotline at 856-540-6200 ext. 1118.

q       Request a presentation and/or tour for your group or organization by calling the hotline at (856) 540-6200 ext. 1118.

q       Visit the district’s Web site at www.psdnet.org

q       Watch for periodic updates or coverage in the Sunbeam and other media.

q       Speak to members of the Board of Education about the plan details.

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September 08 FAQ's

Download pdf file of Questions

About the Referendum

Q1.      What is the purpose of a bond referendum?

A bond referendum is an opportunity for voters to decide if the school district will be authorized to raise funds through the sale of bonds to finance school facility improvements.

Q2.      What is the difference between a levy referendum and a facilities (bond) referendum?

Both are local, school district elections. Levy referendums give school districts the opportunity to ask voters for supplemental funds to support daily operations, including salaries, books, utilities, etc. Levy referendums provide a specific amount of funding per pupil each year for a set number of years.

A facilities referendum, more commonly referred to as a bond referendum, asks voters for a specific amount of money to build schools and/or make school facility upgrades. If approved, the district issues bonds to receive funds for the facilities upgrades and pays back the bonds over a period of years, typically 15 to 25. Funds from bond referendums may only be used for facility upgrades, not to supplement operations.

Q3.      When will the Pennsville School District referendum take place?

Voters will be asked to cast ballots on Tuesday, September 30, 2008.

Polls will be open from 12:00 p.m. to 9:00 p.m. There will be nine (9) polling locations throughout the district.

Dist. 1 – Deepwater Fire House                         Dist. 6 – Queen of the Apostles Parish Hall

Dist. 2 – St. George’s Church Hall                     Dist. 7 – Senior Community Center

Dist. 3 – St. George’s Church Hall                     Dist. 8 – Queen of the Apostles Parish Hall

Dist. 4 – Pennsville Fire House                          Dist. 9 – Queen of the Apostles Parish Hall

Dist. 5 – Pennsville Fire House

Q4.      What facilities are being considered in the bond referendum and what is being done at each location? 

All school instructional buildings are being considered for some form of renovation or upgrade, some more extensive than others. The administration building will not be part of this referendum.

Central Park: System Upgrades

·         Upgrade of staff and student toilet rooms

Penn Beach: System Upgrades

·         Tear-Off and replacement of roof

Valley Park: System Upgrades

·         Upgrade of staff and student toilet rooms

·         Upgrade unisex ADA toilet room

Middle School: Academic Upgrades

·         Renovation of science labs

High School: System Upgrades

·         Fire alarm system upgrades

·         Replace electrical panel board

·         Electrical service upgrade and replacement of obsolete panel boards, upgrades to power & outlet wiring

·         HVAC system replacement including both heating and cooling systems

·         Egress lighting upgrades

·         Limited Area Sprinkler System(LASS) installation in required spaces

·         Upgrade of pneumatic controls to a DDC

·         Structural beam repair

·         Upgrade of staff and student toilet rooms

·         Upgrade shower/locker rooms and address equality issues of boys and girls rooms

·         Canopy upgrades and renovations

·         Classroom casework (cabinetry) replacement

·         Window seal/jamb upgrades throughout

·         Replace aging interior doors

·         Renovate stairwells

·         Provide ramped access to main entrance and other exits.

·         Parking lot upgrades including entrance drive and creating a barrier free entrance

·          

Academic Renovations and Upgrades:

·         New addition for science program (three classrooms and four laboratories with shared prep rooms)

·         Enlarged cafeteria/kitchen (for a 300 person capacity) into an existing space

·         Adaptive Gym Addition

·         New faculty room (replacement of lost space due to cafeteria enlargement)

·         Modify gym entrance lobby

·         Enclosed breezeway link of the main building and annex building (to create a safe closed campus)

·         Relocation of the High school Music program from the middle school space to the High School (to create a safe closed campus)

·         Relocation of the High School Home Economics/Day Care class from the District Offices Building to the High School (to create a safe closed campus)

·         Renovation of the below spaces as well as those impacted by change of use and addition:

Auditorium                    Library 

Art room                       Nurse’s office

Q5.      How much is the referendum going to cost?

The improvements to be financed by the referendum will cost approximately $41.5 million.

A breakdown of the costs for each school is as follows:

            Central Park = $1,029,254

            Penn Beach = $538,985

            Valley Park = $1,037,911

            Middle School = $1,458,926

            High School = $37,481,528

Q6.      Although we have done few renovations over the last 40 years, why is the proposed referendum being held now, especially given current economic conditions?

There are several reasons why the Pennsville Board of Education has chosen to move forward with a referendum at this time:

q       the need for the district to continue to provide a quality education and adequate facilities for Pennsville students, at all grade levels, in a fiscally responsible manner;

q       the need to address health, safety, and other State-mandated standards; 

q       the opportunity to take advantage of funding assistance in the form of debt service aid from the state under the Educational Facilities Construction and Financing Act;

q       to fund the project with interest rates near historic lows;

q       to minimize the possibility of further construction cost escalations as the economy slows; and

q       to increase the probability of strong participation of qualified bidders.

Q7.      What is debt service aid and how will it help the district?

Debt service aid is a partial payment of the debt service—principal and interest—on the bonds by the State of New Jersey.  The bonds are being asked to be authorized at the referendum in order to finance the improvements.  Under existing law, the State is obligated to fund up to 40 percent of the Pennsville School District’s debt service costs if the referendum is approved by the voters.

Q8.      What is the district doing to reduce the cost to taxpayers?  

The board of education and the community-wide task force have prepared a plan that improves the school facilities district-wide and simultaneously maximizes State funding.  The New Jersey Department of Education awards more state funding for core curriculum educational spaces, such as academic classrooms, than it does for non-core curriculum courses, such as music and art classrooms.

The renovations and upgrades at all schools are generally eligible for state aid because they consist of health, safety, and handicapped-accessible upgrades. 

Q9.      What is the difference between school construction projects and privately funded construction projects? Why are there large cost differences between public and private construction projects?

Privately funded projects do not have the same legal requirements as publicly funded projects.    All public school-related improvements are required by State law to pay prevailing wages, or union wages, to the contractors working on the schools.  This State law requirement accounts for the largest difference in price between a private and public work project.

There are other factors that impact construction costs such as the following:

§         contractors are required to be prequalified by the New Jersey School Development Authority  

§         school projects are usually phased in over a period of time (consecutive years over the summer and after school hours) to minimize disruptions to students and staff. Construction over a longer period of time requires increased mobilization of contractor personnel and also additional years of inflation.  As an example, it may require a second shift for improvements that need to be expedited over the summer to be ready for classes in the fall.

A school referendum project CANNOT exceed the funding authorized by voters in a referendum. So the only way a district can get additional funds, if needed, is for the school district to conduct another referendum. Furthermore school districts cannot use funds from other sources without voter approval and cannot spend more than voters approve. 

Q10.    Assuming the referendum passes on September 30, 2008, when will construction work begin, and when will it be completed?

The various improvements are expected to begin in the summer of 2009. The upgrades will be completed in a phases. Several schools may be worked on at the same time.  The anticipated completion date for all the improvements is the fall of 2011.

Q11.    What departments and programs are housed in the administration building?

The administration building houses the offices of the superintendent, school business administrator, transportation and business operations, special education personnel, child study team, and the district curriculum supervisors. In addition to housing vital district personnel the building also is home to the School to Work & School to Career programs, the high school’s pre-school program, and the only adult high school in Salem County. The building provides facilities for a number of community programs, training opportunities, and various evening programs.   

Q12.    Why do we need to do this now?  Doesn’t the school budget cover building maintenance?

The district’s annual operating budget provides for routine maintenance on district buildings; as such, all buildings are safe for students and faculty as of now. However, the annual budget does not provide for extensive renovations and system upgrades. The district buildings are in good condition, but they require health and safety upgrades.

Q13.    If the referendum is successful, the parking lot at the high school will change. How will this affect the visual appearance of the high school?

The proposed new parking configuration will enhance the flow of traffic providing a two- way traffic flow within the high school property and also allow for faculty to park in the front of the building (total of 81 spaces).  The new configuration will also improve the school bus traffic flow.  The view of the high school, including the monument, will not be affected by the new proposed parking layout.

Q14.    Why not build a new high school?

The School District would need to purchase additional land to build a new school.  If land was not available or proved too costly, the existing high school would be demolished at a significant cost and swing space would need to be obtained for the students while the new high school was being built.  After considering such a proposal, the board of education concluded that the most cost-effective way of providing a comprehensive high school program was to renovate the existing high school.

Q15.    What does the proposed addition for the high school provide?

The addition to the high school will create a closed-campus environment along with clustering the various academic departments.  Currently, the open campus at the high school requires the 10^th, 11^th and 12^th graders to eat lunch off school property because the existing high school cafeteria is not large enough. If the referendum is approved, students in all grades will remain on campus for the entire school day and eat lunch in the expanded school cafeteria.  The students would therefore remain under the supervision of the school staff the entire school day.

The proposed referendum addresses several major concerns at the high school.  First, by bringing the high school students over from the middle school and housing them all day in the high school, eliminates student mobility between the schools and minimizes outsiders gaining access to the high school and middle school.

The building addition would also allow the high school to cluster various departments: science, music, world language, special education, and home economics. Clustering would promote the collaboration of staff within each department and improve the movement of students within the school.

Q16.    Where can I get more information?  

q       Look for information sent through the mail, including special referendum editions of The Communicator.

q       Attend Board of Education meetings and/or presentations throughout the community. Board meetings are conducted at 6:00 p.m., unless otherwise noted, on the last Monday of the month.

q       Attend a Back to School Night Session to see the plans and meet school board members, administrators, and others with information about the proposed plan:

o        Tues. Sept. 9.                      Penn Beach, 96 Kansas Road

o        Wed. Sept. 10                     Central Park, 43 Oliver Ave.

o        Thurs. Sept. 11                    Pennsville MS, 4 William Penn Ave.

o        Tues. Sept. 16                     Valley Park, 63 Mahoney Rd

o        Thurs. Sept. 18                    Pennsville HS, 110 S. Broadway

q       Call the Referendum Information Hotline at 856-540-6200 ext. 1118.

q       Request a presentation and/or tour for your group or organization by calling the hotline at (856) 540-6200 ext. 1118.

q       Visit the district’s Web site at www.psdnet.org

q       Watch for periodic updates or coverage in the Sunbeam and other media.

q       Speak to members of the Board of Education about the plan details.