Don't Let Your Tax Dollars Go Up in Smoke!
Delaware Valley Regional High School's 20-year-old fire alarm system is in need of replacement. The aging system is becoming obsolete. The Board of Education is taking proactive steps to ensure the safety of its students, staff, and community by replacing this system.
Replacing an aging fire alarm system is an important investment in our system. A modern, reliable system provides faster detection, improved communication, and enhanced protection in an emergency while helping the school remain aligned with current fire code and life-safety requirements. Upgrading the system now will help ensure our school has dependable fire protection for years to come while supporting a safe, compliant learning environment.
With Voter Approval, DVRHS Will:
Sell bonds to investors.
Use bond proceeds to pay for the equipment and installation of the new system.
Receive state aid that only comes with bond funding.
Pay off the loan in one payment with money available in the Capital Reserve Account.
State Aid Supports School Safety
The Delaware Valley Regional High School Board of Education set a goal to replace the aging fire alarm system. The financing of this project is a combination of State Aid and district savings in Capital Reserve....resulting in a ZERO tax impact!
Voters will decide whether that goal can be fully reached utilizing a financing strategy that brings taxes already paid to the state back to the local community.
This is a financially prudent plan to replace the Fire Alarm System with a special type of state aid that is available to school districts that use bond funding – even if that financing is short-term.
This vote will take place on Tuesday, November 3rd, as part of the General Election.
Why a Bond Referendum?
DVRHS has thoughtfully planned and built a Capital Reserve to pay the cost of replacing the aging fire system. Using bond funding to has advantages:
Replace system as early as summer 2027
Access to $314,840 in state aid called Debt Service Aid– that only comes with an approved bond referendum
Bring state tax dollars to Del Val, rather than taxes our residents pay go to other services determined by the state
Stretch Capital Reserve funds to complete other capital improvements
Access to $314,840 in state aid - only with voter approval.
School districts can leverage State aid to address major capital needs while reducing the amount of the project that must ultimately be supported by local taxpayers.
The NJ Department of Education has determined that the fire alarm replacement project is eligible for Debt Service Aid.
$314,840 Debt Service Aid
This is money that you have already paid to the state as income taxes. It can only be brought back to invest in our schools through approval of the referendum. This is a “use it or lose it” scenario.
What's the Timeline?
With voter approval, DVRHS would take the next steps with an anticipated completion date of summer 2027.
Bond Referendum Project Details
Passage of the November 3rd referendum would allow the district to replace an aging fire alarm system using available state aid.
The current fire alarm system was installed in 2006
Parts and components of the panel are becoming difficult to find
Repairs have become more frequent and costly
New Fire Code NFPA 72 requires the addition of audio and visual notification devices, such as a speaker system and horn strobes in classrooms and hallways, as well as heat detectors above the ceiling.
Replacing an aging fire alarm system is an important investment in the safety of our students, staff, and school community. A modern, reliable system provides faster detection, improved communication, and enhanced protection in an emergency while helping the school remain aligned with current New Jersey fire code and life-safety requirements. Upgrading the system now will help ensure our school has dependable fire protection for years to come while supporting a safe, compliant learning environment.
The Bottom Line:
Replace the current fire alarm system before it no longer provides full protection from a fire threat.
State Aid is the Key to This No Tax Impact Plan
Most people avoid debt since interest payments increase the overall cost of a purchase. New Jersey School Districts can realize savings by issuing debt through an approved bond referendum. Debt Service Aid provided by the state saves the local community 34% of the cost for eligible capital improvements. The state has committed to offering 34% or $314,840 towards the replacement of the fire alarm system at Delaware Valley Regional High School.
How Can the Fire System be Updated and Replaced Without an Added Tax?
The district has thoughtfully planned and built a Capital Reserve Fund. Capital Reserve Funds can only be used for capital improvements. The current balance in the district capital reserve is $1.6M.
Capital Reserve is Like a Savings Account
Purpose: Funds are strictly used for the local share of long-range facilities plans or capital projects exceeding educational efficiency standards. Monies cannot fund general fund current expenses.
Deposits & Withdrawals: Boards may fund reserves via annual budget appropriations or year-end transfers of unexpended line-item appropriations by board resolution. Withdrawals require budget inclusion or specific approvals.
Investment Earnings: Interest or capital gains earned become part of the reserve account and must be budgeted appropriately.
Allowable Use of Funds: A board of education may transfer funds from the capital reserve account to the debt service account for the purpose of offsetting principal and interest payments for bonded projects that are included in the district's long-range facilities plan.
Referendum Voting - What will I see on the Ballot?
Bond Proposal Question
The Board of Education of the Delaware Valley Regional High School District in the County of Hunterdon, New Jersey (the "Board") is authorized to:
(a) purchase and install a fire alarm system at Delaware Valley Regional High School to replace the existing 20-year old system equipment;
(b) appropriate $926,000 for such acquisition and improvements; and
(c) issue bonds in an amount not to exceed $926,000.
The final eligible costs for the projects approved by the New Jersey Commissioner of Education are $926,000.
The project includes $0 for school facility construction elements in addition to the facilities efficiency standards developed by the Commissioner of Education or not otherwise eligible for State of New Jersey (the "State") support pursuant to N.J.S.A. 18A:7G-5(g).
The State debt service aid percentage is equal to 40% of the annual debt service with respect to the final eligible costs of the projects.
Debt Service Aid - 34% vs 40%
Why does the referendum question state 40% state aid, but the district's information only references 34% state aid?
The Educational Facilities and Construction Act provides funding for new construction and renovation projects. Funding is stated in the law at 40%. When a district secures its share of the project through a bond referendum, this aid is called Debt Service Aid.
However, through the Annual Budget Appropriation Bill that the state passes each year, the level of funding for Debt Service Aid has been funded at 85%. Therefore, .40 times .85 = .34. The state has funded debt service at 85% for the last 12 years. We are using the 34% to estimate the amount we will receive in an effort to be transparent and conservative about the amount the district will receive.
34% is a more realistic estimate of the debt service amount.
