Referendum – November 2026

Referendum Q & A

What is a referendum?

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It is a proposal to the voters by the Board of Education for approval to finance capital project(s). Financing is in the form of bonds. The process is strictly governed by statutory law.

Why is the district proposing this referendum?

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• The district has completed a comprehensive assessment of both school buildings.
• Many building systems have exceeded or are approaching the end of their service life.
• Delaying these projects will likely result in more expensive emergency repairs and increased maintenance costs.
• The referendum allows the community to address critical infrastructure in a planned and responsible manner.

Why pursue the referendum now?

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• A referendum has been a topic of discussion for several years. In the past year, the District has taken the necessary steps to bring the project to fruition.

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• Many systems are 30–60 years old.
• Several HVAC units still utilize obsolete refrigerants.
• Roofs and exterior walls continue to deteriorate.
• Waiting increases repair costs and the likelihood of emergency failures.
• Planned replacement is significantly more cost-effective than reactive repairs.

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How much debt, in total, is the district asking voters to approve with this referendum?

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Total Project Investment

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Over the full term of that borrowing, how much interest is the district estimating taxpayers will pay?

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The final interest rate is dependent on market conditions. The current plan is to coordinate debt servicing with the amortization of sunsetting debt. With a projected interest rate of 4.1%, interest only to be paid over 20 years is expected to total $8,115,325.

For how many years would taxpayers be paying off this debt?

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Typically, the length of the bonds is commensurate with the useful life of the improvements. In this case, it is 20 years.

How much of the total referendum is expected to qualify for state debt-service aid?

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Typically, eligible projects receive New Jersey State construction aid up to 40%. The State has administratively reduced that percentage for all Districts to $34%. That would translate to a total State contribution of $8,342,351.

What would the estimated yearly tax increase be for the average homeowner in Allamuchy if the referendum passes?

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While the final numbers cannot be determined exactly until the issuance of the bonds, it is expected that for the average home in Allamuchy, the cost will be $318.97 per year.

How much of the total referendum is expected to qualify for state debt-service aid?

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100% of the project qualifies for state debt service aid.

Of the state aid being discussed, how much is actually guaranteed and how much is only projected or expected?

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The State has already determined that the entire project qualifies for debt service aid.

Which parts of the referendum would not qualify for state aid and would have to be paid entirely by local taxpayers?

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The State has determined that the entire project qualifies for state aid. Therefore, no portion of the project will be bourn entirely by the local taxpayers.

Can the Board provide a breakdown of the cost of each individual project included in the referendum?

There are three projects within the overall scope of the referendum:

Heating, Ventilation & Air Conditioning (HVAC) ($10.83 million)

• Replace aging and failing boilers.
• Replace outdated rooftop units.
• Install modern digital building controls.
• Improve classroom heating and cooling.
• Improve ventilation and indoor air quality.
• Replace equipment dating back to the 1960s, 1980s, and 1990s.

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Can the Board provide a breakdown of the cost of each individual project included in the referendum?

There are three projects within the overall scope of the referendum:

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Roofs and Building Envelope ($4.92 million)

• Replace roofs that have reached the end of their useful life.
• Replace deteriorating windows.
• Repair exterior masonry.
• Repair siding.
• Prevent water infiltration that damages buildings.

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Can the Board provide a breakdown of the cost of each individual project included in the referendum?

There are three projects within the overall scope of the referendum:

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Mountain Villa School Exterior Repairs ($675,000)

• Masonry repairs.
• EIFS (Exterior Repair) repairs.
• Expansion joint repairs.
• Steel lintel repairs.

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Which projects are considered urgent health or safety issues, and which are renovations, upgrades, or projects that could potentially wait? 

All aspects of each project are essential to the safe occupation of the facilities for educational purposes. Postponement of any of the work could result is damage to the facilities and closure of educational spaces.

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What other options were seriously considered before deciding on this referendum? 

The Board and administration considered additional projects before approving the current proposal. Deferred projects were not as urgent and could possibly be pursued through grants or alternative funding mechanisms.

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If construction bids come in higher than the current estimates, what happens?

Bidding on the various aspects of the project is governed by the law on public contracts. The District has the authority to reject unacceptable bids and relet the bids until they conform with budgetary limitations.

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Who has the authority to approve additional costs and change orders? 

Change orders to awarded contracts, whether resulting in additional costs or not, ultimately must be approved by the Board of Education. Authority on minor changes can be delegated to a school official. Before any change order increasing the contract amount is authorized, the Board Secretary must certify the availability of funds.

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How will students benefit? 

Students will benefit from:

• More reliable heating and cooling
• Improved indoor air quality
• Better temperature control
• Fewer classroom disruptions
• Safer and healthier learning environments
• Protection of school facilities for future generations

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How will taxpayers benefit? 

• Protects community investment in school buildings.
• Addresses infrastructure before catastrophic failures occur.
• Reduces costly emergency repairs.
• Improves energy efficiency.
• Helps preserve facilities for decades.
• Increase in property values
• Takes advantage of State subsidy (34%)

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