N.J. Admin. Code § 6A:26-4.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 6A:26-4.2 - Use of capital-projects fund to account for a capital project funded in part or in whole by school bonds, short-term notes, or pre-EFCFA lease-purchase agreements of greater than five years$DQ$ duration

(a) The cost of a capital project covered by bond proceeds shall include costs associated with architects, lawyers, and construction managers even if not specifically stated in the referendum question approved by voters or in the resolution approved by the board of school estimate or capital project review board. A district board of education that budgeted and charged such costs to the general fund prior to the referendum has the option to reimburse the costs from the capital-projects fund after approval of the referendum or resolution.

(b) Use of the capital-projects fund to account for bond proceeds and short-term notes shall be limited to the following:

1. Type I and Type II school districts with boards of school estimate shall be limited to the amount fixed by the board of school estimate pursuant to 6A:26-3.7(e) for each capital project, or projects when jointly submitted, under 18A:22-19 and 30, and 18A:24-55.

2. Type II school districts without a board of school estimate shall be limited to the amount approved by voters for each capital project, or projects when jointly submitted, pursuant to 18A:22-39 and 18A:24-55.

3. State-operated school districts shall be limited to the amount approved by the capital project review board.

4. The local share of capital projects when jointly submitted in (b)1 or 2 above may be transferred among projects within an approved referendum as long as the school district adequately discloses in the referendum question that such transfers can be made and the district board of education can attest that all projects can be completed as approved, and no excess costs beyond those approved by voters shall be eligible for transfers.

i. If the ability to transfer was not disclosed in the referendum question, the Commissioner may approve the transfer upon the school district's written request of need and the district board of education's certification of its ability to complete all projects as approved and that no excess costs beyond those approved by voters shall be eligible for transfer.

(c) Use by a district board of education of the capital projects fund to account for a lease-purchase agreement greater than five years is limited to the expenditures in the approved pre-EFCFA lease-purchase agreement greater than five years.

(d) A district board of education shall not transfer capital-project cost overruns to general-fund current expense or capital outlay and shall not fund capital-project cost overruns by general-fund appropriations or surplus pursuant to 18A:22-8.2, unless such transfer is approved by the Commissioner to supplement proceeds from a school bond authorization or pre-EFCFA LPA agreement pursuant to 18A:22-8.2(c). After consideration of alternative corrective actions, the Commissioner shall approve, according to 6A:26-4.4(a)5, the transfer only if it is in the best interests of both students and taxpayers.

(e) Interest earned on investments in the capital-projects fund shall not be used to supplement the school-bond authorization, unless expressly authorized in the referendum or resolution pursuant to 6A:26-3.7, or expressly authorized in the pre-EFCFA LPA.

1. All transfers of interest shall be:

i. Made by resolution to either the debt-service fund or the general fund at the discretion of the district board of education; and

ii. Completed annually and at the end of the project.

N.J. Admin. Code § 6A:26-4.2

Amended by R.2004 d.214, effective 6/7/2004.
See: 36 N.J.R. 243(a), 36 N.J.R. 2733(b).
In (b), added 4; in (d), amended the N.J.A.C. reference.
Amended by R.2007 d.81, effective 3/19/2007.
See: 38 N.J.R. 4533(a), 39 N.J.R. 899(a).
In (b)1 and (b)2, inserted "school" preceding "districts" throughout; in (b)3, substituted "State-operated school districts" for "State Operated Districts"; in (b)4, inserted "of education"; and in (b)4i, inserted "school" preceding "district's".
Amended by R.2013 d.145, effective 12/16/2013.
See: 45 N.J.R. 1026(a), 45 N.J.R. 2557(a).
Section was "Use of capital projects fund to account for a capital project funded in part or in whole by school bonds, short term notes, or pre-EFCFA lease purchase agreements of greater than five years duration". Rewrote the section.