Alexandria Township School District Referendum 2020 Comprehensive Overview
The Alexandria Township School District Referendum 2020 aims to provide a transparent outline of the proposed educational, financial, and facility improvements while maintaining tax neutrality. This document, provided by the Board of Education, helps registered voters understand the referendum for an informed vote. Key points include the strategic plan, community vision, financial aspects, planning details, and the importance of the referendum at this time. Consolidation of schools, potential cost savings, and access to state aid make this project crucial for enhancing the learning environment for students.
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ALEXANDRIA TOWNSHIP SCHOOL DISTRICT REFERENDUM 2020 A COMPREHENSIVE AND TRANSPARENT OVERVIEW OF THE REFERENDUM FOR EDUCATION, FINANCIALS, FACILITIES, PLANNING AND TAX NEUTRALITY THIS DOCUMENT HAS BEEN PROVIDED TO YOUR HOUSEHOLD BY THE ALEXANDRIA TOWNSHIP BOARD OF EDUCATION TO PROVIDE THE REGISTERED VOTER(S) IN YOUR HOME WITH A FULL UNDERSTANDING OF THE PROPOSED REFERENDUM SO AN INFORMED VOTE CAN BE CAST BY EACH VOTER PLEASE TAKE A FEW MINUTES TO READ THROUGH THIS DOCUMENT BEFORE COMPLETING YOUR BALLOT THANK YOU.
OUTLINE INTRODUCTION THE STRATEGIC PLANAND COMMUNITY VISIONFOROUR SCHOOL STATE AID REDUCTIONSAND OUR EXISTING FACILITIES NEEDS TAX NEUTRALITY THE BALLOT QUESTION: EXPLANATORY STATEMENT & PROPOSAL FINANCIALS PLANNING, THE PLAN AND WHAT GETS DONE WHY NOW & WHATIS DIFFERENTFROM 2016? DEMOGRAPHER S REPORT WHATITISANDIS NOT NEXT STEPSAND VOTINGTHROUGH NOVEMBER 3, 2020 SUMMATION
REFERENDUM INTRODUCTION WHAT IS A BOND REFERENDUM? A bond referendum is an election conducted by a Board of Education seeking voter approval to undertake capital improvement projects to a school and to finance such projects through a long term loan (a bond) WHY IS THIS PROJECT BEING PRESENTED AT THIS TIME? As a result of State aid cuts, the Board is seeking to save costs by consolidating the schools Interest rates are at 30 year lows State aid for the project is available now ($2.5 million). Window may close in future Locks in ability to use capital reserve towards project and protects capital reserve from being applied in accordance with potential state mandates Current financial environment allows referendum to move forward on a tax neutral basis WHY NOT JUST PAY FOR THESE PROJECTS OUT OF THE BUDGET? A bond referendum is the only way that a Board can borrow money to finance significant capital improvements over a long period of time. Otherwise, major improvements can only be done in very small increments over multiple budget cycles In addition bonding the projects allows the School District is able to access State funding for the projects
ATSD STRATEGIC PLAN AND VISION The 2020 referendum is designed to align with our strategic plan goals developed by our staff, community members and the Board of Education. The referendum will seek to combine both schools into one expanded facility The referendum, combined with the anticipated operational savings, is designed to be TAX NEUTRAL. The savings realized by consolidation will directly offset the bonding cost The consolidated school will be upgraded to address all of the highest priority issues identified by our architect and provide a quality learning environment for our students
ATSD STRATEGIC PLAN AND VISION The Board of Education has taken in all of the data and put forth a referendum that the Board and its Administrators believe to be: The best plan for our current and future students Financially responsible to our tax base Positioning the District for the best chance of success going forward The most cost-effective pathway when paired against ongoing and cumulative state aid reductions A plan that allows for organic growth of our student population
STATE AID CUTS TO EDUCATION In 2018, the State of New Jersey passed Bill S2, reducing state aid to a number of districts that were receiving excess school funding. Every school district in Hunterdon County, including Alexandria Township, was negatively impacted. Here are the state reductions by year for ATSD. These are cumulative: SOURCES: WWW.NJ.GOV/EDUCATION/STATEAID WWW.LEGISCAN.COM/NJ/TEXT/S2/ID/1815831
EXISTING FACILITIES NEEDS Also in 2018, the Board of Education commissioned our architect, Spiezle, to perform a full facilities assessment and let the Board know what needed to be fixed in the short, medium and long term. These were valued as Priority 1, 2 and 3, respectively. This report was delivered to the Board in October 2018. Priority 1 (High): Items are related to health, safety & security, code issues and energy. For our schools these were primarily comprised of roofing, mechanicals, building envelope and life/safety issues and addressed in 3-5 years Priority 2 (Medium): Additional health, safety and security, code and longer-term district needs Priority 3 (Low): Focuses on aesthetics and anything not covered in priorities 1 and 2
TAX NEUTRALITY The Alexandria Township Board of Education is sensitive to the tax liabilities borne by our residents. There are few ratables in our township, so an increase in the tax liability hits the wallets of our residents. 1. This referendum is NOT debt replacement, like the proposed referendum in 2016 2. As a result of the consolidation of facilities, this referendum will fund the proposed debt WITHOUT an increase to the tax liability 3. This tax-neutral referendum DOES NOT rely on matching state aid to be tax-neutral 4. Any state aid received allows our District to budget within the constructs of the state aid reductions, the 2% budget cap AND put a small amount of funds toward program, staffing and/or a responsible capital and maintenance reserve accounts for identified projects It is important to note that this referendum is tax-neutral AFTER our township saw a small decline in the tax rate in 2018 when the old school debt rolled off of our district liabilities
THE BALLOT QUESTIONS EXPLANATORY STATEMENT PROPOSAL: IN THE EFFORT TO REDUCE SCHOOL DISTRICT OPERATING AND FACILITIES EXPENSES, PARTICULARLY IN LIGHT OF RECENT STATE AID CUTS, AND TO PROVIDE UPGRADED SCHOOL FACILITIES, THE BOARD IS SEEKING TO CONSOLIDATE ITS SCHOOL FACILITIES INTO ONE FACILITY THROUGH THE EXPANSION AND RENOVATION/UPGRADE OF THE MIDDLE SCHOOL AND THE DEMOLITION AND CLOSING OF THE ELEMENTARY SCHOOL. FUNDING FOR THE PROJECTS: THE TOTAL PROJECT COSTS ARE $14.99 MILLION WITH THE STATE AGREEING TO CONTRIBUTE APPROXIMATELY $2.5 MILLION TOWARDS THE COSTS. THIS STATE FUNDING IS CONTINGENT ON THE PASSING OF THE PROPOSAL. IN ADDITION, THE BOARD ANTICIPATES FURTHER REDUCING THE COST BY APPLYING $2 MILLION OF CAPITAL RESERVE FUNDS TO THE PROJECT COST. THE COST OF ABOUT $12.99 MILLION WILL BE FINANCED THROUGH LONG-TERM BONDS. THE STATE CONTRIBUTION WILL BE IN THE FORM OF DEBT SERVICE AID ON SUCH LONG-TERM BONDS. PROPOSAL THE BOARD OF EDUCATION OF THE TOWNSHIP OF ALEXANDRIA IN THE COUNTY OF HUNTERDON, NEW JERSEY IS AUTHORIZED TO (A) CONSOLIDATE ITS SCHOOL FACILITIES INTO ONE FACILITY THROUGH THE EXPANSION AND RENOVATION/UPGRADE OF THE MIDDLE SCHOOL AND THE DEMOLITION AND CLOSING OF THE ELEMENTARY SCHOOL; (B) EXPEND NOT TO EXCEED $14,994,229 ON THE PROJECT; (C) APPLY $2,000,000 OF CAPITAL RESERVE FUNDS TOWARDS THE PROJECT AND (D) AND ISSUE BONDS IN AN AMOUNT NOT TO EXCEED $12,994,229 FOR SUCH PROJECTS. THE STATE HAS AGREED TO PROVIDE DEBT SERVICE AID IN THE AMOUNT OF 40% OF THE FINAL ELIGIBLE COSTS OF THE SCHOOL FACILITIES PROJECT. $7,329,385 OF THE COSTS OF THE PROJECT ARE FINAL ELIGIBLE COSTS. THE LOCAL SHARES MAY BE TRANSFERRED AMONGST THE PROJECTS. THE PROJECT INCLUDES $2,145,000 SCHOOL FACILITIES CONSTRUCTION ELEMENTS IN ADDITION TO THE FACILITIES EFFICIENCY STANDARDS DEVELOPED BY THE COMMISSIONER OF EDUCATION, OR THAT ARE NOT OTHERWISE ELIGIBLE FOR STATE SUPPORT PURSUANT TO N.J.S.A. 18A:7G- 5(G).
REFERENDUM FINANCIALS The ATSD BoE has received the preliminary state aid back, and the state is matching 34% of eligible costs. The bonding is a 20-year note, estimated to be held at 2.50% interest. The budget impact provides a surplus before state debt service aid and an additional annual surplus when state aid is added
PLANNING & THE PLAN The Board of Education reviewed the lessons learned from the 2016 referendum. We also approached this new referendum by looking not only at our strategic plan, but what was fiscally responsible for our taxpayers and what was best for the long-term educational success for our students. Over the next few slides, you will see not only what we are proposing, but why. There are certain things left off of the referendum intentionally because they would not receive any state debt service aid. There are items added into the agenda so we could take advantage of state debt service funds. Even the geographic positioning of the new addition was altered from the 2016 referendum so it would get more natural light, have a smaller northern face (to reduce moss and mold issues) and is being constructed so that if we ever have to add space to our school again, we can add a second floor for 10 more classrooms without having to incur major site work expenses.
PLANNING & THE PLAN This referendum will cover the following major actions: 1. Addition of a 10 classroom wing onto AMS 2. Razing, removal and abatement of LDW 3. Fix all end of life mechanicals at AMS and install brownout protection for the electricals 4. Remove and replace the roof at AMS, with the exception of the old gym done in 2019 1. An overlay in 2020 would cost $1,500,000 and would have to be ripped off in 30-years at a high cost to taxpayers 2. A tear-off and replacement in 2021, with state aid in this referendum, costs taxpayers $1,320,000 and an overlay can be done in 30 years, extending the life of the roof and pushes major costs to the district out 6 decades 5. New parking for 50 vehicles at AMS 6. Door lockset replacement with security locks and safety film on all doors 7. Update the locker rooms in the old gym at AMS 8. Update the 4th grade bathrooms at AMS 9. Level the soccer field and move the field hockey field to level ground 10. Underground water reservoir for fire emergencies
PLANNING & THE PLAN Q&A: Q: Why add 10 classrooms when the last referendum only called for 5? A: The addition of 10 classrooms ensures that we will have enough space in one facility to offer 3 classroom sections per grade (except pre-k). This also allows for the preservation of science and tech labs that can be re-purposed for other learning areas like maker spaces Q: Why does LDW have to be knocked down? A: The Board and our administrators explored all avenues to find a tenant, find a buyer consistent with the educational zoning, or even a community center. The fact remains that LDW, as it sits today, requires over $1,700,000 in short-term renovations and an additional $3,800,000 in medium term work. It s not a true asset, it is a liability. Additionally, having a large, vacant building in the center of our community is undesirable
PLANNING & THE PLAN Q&A: Roof sections 6 and 8 (shaded in green) were rehabilitated in 2019 using capital reserves. The red areas represent 65,000 square feet of the 74,000 square feet existing today. All of the red sections are at end of serviceable life and need to be recoated or replaced. Q: The Board has $2 million in the capital and maintenance reserve accounts, why not just use that to fix the roof at AMS? A: By adding in the roofing costs to the referendum, the District gets 34% of the project cost matched by the state. This will allow the District to remove and replace the roof for slightly less than what a new roof coating over the existing roof would have cost. A roof can only be 2 layers, so by removing and replacing the roof now, we get a 30-year warranty. At the end of life for this roof, the District can overlay what will be added in 2021 and extend a major expense for another 30 years
PLANNING & THE PLAN Q&A: Q: How will the students be distributed throughout one building? A: The new wing will hold Pre-K, Kindergarten and 1st grade. Second and third grade are in the same hallway as the media center. Fourth and fifth share a hallway with part of sixth. Seventh and eighth are in the most recent addition. This allows for a natural progression through the building while keeping the oldest and youngest kids physically distant
PLANNING & THE PLAN Q: I didn t see anything about the baseball field, what happens to that field? A: The estimated cost to move the baseball field across the campus was $300,000. This expense is not eligible for state aid. That was also the same cost to fix both the soccer and field hockey fields combined. Until the District saves enough funds in our capital reserve, the baseball team will be using the fields at Alexandria Park. Q: Why is an underground water storage tank being added as part of the project? A: The school campus is central to much of our community and funded by the entire community. The water storage tank will allow the fire department to have access to water immediately for a problem at the school or surrounding area. The closest fill location is the pond at Camp Tecumseh. Having this tank ensures that the water is not frozen, and a fire emergency can be responded to as quickly as possible
PLANNING & THE PLAN Q&A: Q: Staffing costs seem to be the highest level of savings by combining schools where does that savings come from? A: With a single building, the administrative overhead is reduced. There are also advantages to having a single facility for all of the non-core programs eliminating travel time between buildings allows more classes to be taught by this group of staff. During the 2016 referendum a common concern voiced was having more than one nurse in the building. The addition of state funding to what is a tax-neutral referendum in 2020 allows the District to make those types of decisions. Q: What happens to the LDW playground equipment, sun shade and our beloved garden? A: All of that will move to AMS. The elementary school students will still have access to their playground. The sun shade will be put back in place. And our school garden will move up to the AMS campus (and maybe even expanded now that we have all students in one place)
PLANNING & THE PLAN Q&A: Q: Can I look at all of the financial information used to determine the size of the referendum? A: All of the financial and architectural documents used to determine the scope of the referendum will be available to any member of the community upon request unless 1) they violate a sunshine law or 2) they would interfere with the competitive bidding process. Q: What happens if the referendum fails? A: With no relief in sight for state aid cuts to our District s budget, the Board of Education will have to work with the Superintendent and Business Administrator to determine what programs or curriculum will be reduced or removed in order to meet the budget and still provide a core education to our students. It s not a set of decisions we want to have to make
WHATS DIFFERENT THIS TIME? 1. There is a plan for LDW and a plan for expansion that doesn t include portable trailers 2. The state aid cuts were not in place last time and we have a new financial reality 3. The 2020 referendum is tax-neutral and pays for itself with internal savings realized 4. The District Board of Education is a new set of volunteers, all of whom have kids in Pre-K 8 5. We have consolidated the principal and superintendent role at an annualized cost savings of $120,000 6. The district has a new auditor and attorney who are more actively involved in our district and reviewing our financials from a fresh perspective 7. The referendum allows for responsible growth over time for capital and maintenance reserves to fund school projects without the need for smaller, interim referendums over time 8. The media center is left intact, as are the science labs
DEMOGRAPHERS REPORT The Board of Education commissioned a new Demographer s report in late 2019. This was done because the report done during the 2016 referendum did not accurately predict our actual student populations over time. Our district remained relatively flat, at about 485 students
DEMOGRAPHERS REPORT While the report shows an expected downtrend in student population, the demographer s calculus does not include a component for those households where the tenants are older, and more likely to retire and move or pass away, creating housing turnover. The report also does not account for a flight to safety that results from unforeseeable events such as pandemics or civil unrest Additionally, it is worth noting that the three age groups that experienced an uptick in growth in our community are those age 20-24 and 25-34 as well as ages 65-74. The first age group set is more likely to have kids and need school services. The second group is more likely to retire and perhaps move to a more tax-friendly location
NEXT STEPS Between now and November 3, 2020, the ATSD Board of Education will be hosting a number of question and answer sessions with the community to educate everyone about the referendum, why the Board believes it makes good sense for our students and our finances Documents pertaining to the referendum, such as financials, demographic reports, etc., have been posted on the school website www.dvrhs.org/domain/1188 A 3-D model of the school with the proposed addition will be produced so school families and tax payers can come and see what the new addition will look like without having to envision it from a set of blueprints Any questions can be sent via email to BOE@AlexandriaSchools.org
SUMMATION The 2020 referendum aligns with the Alexandria School District s current Strategic Plan The 2020 referendum is a responsible and well-constructed plan that will leave our students with the best possible educational outcome The 2020 referendum is TAX NEUTRAL if the Board of Education did not have to get this approved by voters, tax-payers would NOT see a change in their tax levy, but they WOULD see an upgraded facility and campus at AMS, a facilities plan that (in part) extends out 60 years and a district that is in a better position to provide a strong education for our children The savings from closing LDW directly offset the cost of the new bonding Our district will continue to lose state aid for at least the next 5 school years The current state of maintaining two aging buildings that collectively require millions in overdue maintenance and repair, coupled with a limited ability to raise funds outside of a referendum will likely lead to cutting or eliminating non-core programs if there is not a change to how we approach our facilities and finances in the district THANK YOU
