Warren Township Schools

Q:

How is it possible that approving this referendum will not affect my taxes?

A:

The District maintains a Capital Reserves fund. When combined with the state aid that comes along with a referendum, this fund fully covers the District’s share of the referendum costs.

Q:

How much money will the District have remaining in Capital Reserves after the completion of these projects?

A:

The District will retain approximately $1,000,000 in Capital Reserves after paying its share of the referendum costs.

Q:

What happens if the referendum fails?

A:

These projects are necessary to replace critical infrastructure that is beyond its useful life. The projects must get completed. Without the 34% contribution from the State, the District would absorb 100% of the cost. As a result, the projects would be completed over a longer time frame to allow for additional funds to be saved.

Q:

How come the District has all this money in Capital Reserves? Shouldn’t that money have gone back to the taxpayers?

A:

For many years, the District has been very careful with its spending allowing it to put money into Capital Reserves to build up the resources necessary for these impending capital projects. Had this not been done, the only option to complete these critical infrastructure projects would have been to go out for a referendum that would have raised taxes and accrued long-term debt.

Q:

How were the reserves funded?

A:

Each year the Board of Education creates a district budget, which reflects both estimated expenses as well as revenues.  Monies are available at year’s end for one of two reasons: the district was able to carefully manage expenses and there are monies remaining in appropriations account lines, or the district was able to maximize revenue generation opportunities.  Every year, in June, the Board reviews the remaining balances and chooses how to allocate the monies, which can include deposits to reserve accounts (Capital and Maintenance).

Q:

How will they be re-funded when money is then taken out to fund these projects?

A:

The monies on hand reflect years of strong financial management resulting in reserves deposits as noted above.  It is anticipated that each June the district will be able to replenish those monies currently projected for use for the district’s share of the approved referendum projects.  

Q:

Will we get a diverse pool of bids?

A:

The referendum vote is the first of a multi-step, multi-year process for the projects.  Once all the project plans are finalized, and have received state approval, the district will accept bids.  These bids must come in within the project’s budget.  This is open public bidding, for which all qualified bidders are encouraged to submit.  The bid is noticed in a legal ad in the paper as well as on the district’s website.

Q:

Will the projects possibly go over budget?

A:

Actually, the projects can not legally go over budget. The referendum represents the maximum total cost of all of the projects.