-
Department approval
of the Long Range Facilities Plan (LRFP) and the capital project is
necessary before districts can award bids and initiate capital project
construction. For school facilities projects, project approval includes
calculation of final eligible costs and the district’s election
to receive a grant or debt service aid.
-
Under EFCFA, all local
funding for implementation of capital projects must receive voter
or Board of School Estimate approval. Approval is achieved through
inclusion in the district’s budget certified for taxes detailed
on supporting documentation 4, or through a bond referendum or special
election question, or specific capital reserve deposit. Funding for
the local share less excess costs of a school facilities project may
also be withdrawn from capital reserve without voter approval, by
board resolution.
-
Spending on a capital
project approved by referendum is limited to the amount approved
by the voters in the referendum question.
-
All bond referenda
must include and list separately by source, all local revenue to be
used on the capital project. This includes such revenue as capital
reserve, surplus, and interest earnings. Spending on a referendum
approved capital project cannot be increased above the voter approved
amount through a transfer of local revenue to the capital projects
fund if it was not identified in the original question.
-
Board approval of
change orders must certify funds are available to complete the capital
project. No change order can be approved if it will increase the total
cost above the referendum approved amount.
-
Contracts for capital
projects require a contingency of 5 percent at time of bid award.
|
Revenue Source
|
Pre-Award of Construction Contract (incl. 5% required
contingency)
|
Post-Award of Construction Contract for Change Orders
|
|
Non-Referendum
|
Referendum
|
Non-Referendum
|
Referendum
|
| Bond Proceeds |
NA
|
Up to Amt Approved
in Referenda Q |
NA
|
Up to Amt Approved
in Referenda Q |
| EDA Grant |
Grant Award
- State Share of Final Eligible Costs |
Grant Award
- State Share of Final Eligible Costs as stated in Ref |
Grant Award
- State Share of Final Eligible Costs |
Grant Award
- State Share of Final Eligible Costs as stated in Ref |
Budgeted
Capital Outlay |
As approved
in budget & detailed by project on SD4. Cap outlay budget restricted;
reallocation OK among projects. |
NA
|
As approved
in budget & detailed by project on SD4. Cap outlay budget restricted;
reallocation OK among projects. |
NA
|
| Capital
Reserve Withdrawal by Bd Resolution |
Up to 110% of local share less excess costs.
|
Up to Amount
of Cap Reserve in Approved Referendum Q. |
Up to 110%
of local share less excess costs. |
Up to Amount
of Cap Reserve in Approved Referenda Q. |
| Interest
on Bond Proceeds |
NA
|
Up to Amt of
Interest in Approved Ref |
NA
|
Up to Amt of
Interest in Approved Ref |
Surplus
by
Board Resolution |
NA
|
Up to Amount
of Surplus in Approved Referenda |
Up to 20% of
Contract Award for Allowable Change Orders |
Up to Amount
of Surplus in Approved Referenda |
Surplus
if Receive Formal
Commissioner Approval |
NA
|
Amount if approved
by Commissioner per N.J.S.A. 18A:22-8.2 |
NA
|
Amount if approved
by Commissioner per N.J.S.A. 18A:22-8.2 |
| Special
Voter Question |
Up to Amount
approved in Special Question |
Up to Amount
approved in Special Question |
Up to Amount
approved in Special Question |
Up to Amount
approved in Special Question |
| Current
Expense by Bd Resolution |
NA
|
NA
|
NA
|
NA
|
| Unexpended
Bond Proceeds |
Only
for Pre-EFCFA proceeds and if receive voter approval for new use.
Bond Proceeds under EFCFA must be used to reduce principal. See regulations
for specific requirements. |
|
Revenue Source
|
Pre-Award (incl. 5% required contingency)
|
Post-Award for Change Orders
|
|
Non-Referendum
|
Referendum
|
Non-Referendum
|
Referendum
|
| Bond Proceeds |
NA
|
Up to Amt Approved
in Referenda Q |
NA
|
Up to Amt Approved
in Referenda Q |
| EDA Grant |
NA
|
NA
|
NA
|
NA
|
|
Budgeted Capital Outlay
|
As approved
in budget & detailed by project on SD4. Cap outlay budget restricted;
reallocation OK among projects. |
NA
|
As approved
in budget & detailed by project on SD4. Cap outlay budget restricted;
reallocation OK among projects. |
NA
|
| Capital
Reserve Withdrawal by Bd Resolution |
After
receiving voter approval in budget with separate Q. |
Up to Amount
of Cap Reserve in Approved Referendum Q. |
After
receiving voter approval in budget with separate Q. |
Up to Amount
of Cap Reserve in Approved Referenda Q. |
| Interest
on Bond Proceeds |
NA
|
Up to Amount
of Interest in Approved Referenda |
NA
|
Up to Amount of Interest in Approved Referenda
|
Surplus
by
Board Resolution |
Total
of 1% of budget or $50,000, whichever is greater. |
Up to Amount
of Surplus in Approved Referenda |
Up to 20% of
Contract Award for Allowable Change Orders |
Up to Amount
of Surplus in Approved Referenda |
Surplus
if
Receive Formal
Commissioner Approval |
NA
|
Amount if approved
by Commissioner per N.J.S.A. 18A:22-8.2
Approval unlikely.
|
NA
|
Amount if approved
by Commissioner per N.J.S.A. 18A:22-8.2
Approval unlikely.
|
| Special
Voter Question |
Up to Amount
approved in Special Question |
Up to Amount
approved in Special Question |
Up to Amount
approved in Special Question |
Up to Amount
approved in Special Question |
| Current
Expense by Bd Resolution |
NA
|
NA
|
NA
|
NA
|
| Unexpended
Bond Proceeds |
Only
for Pre-EFCFA proceeds and if receive voter approval for new use.
Bond Proceeds under EFCFA must be used to reduce principal. See regulations
for specific requirements. |
)
