N.J. Admin. Code § 6A:26-4.6

Current through Register Vol. 56, No. 11, June 3, 2024

Section 6A:26-4.6 - Unexpended bond proceeds

(a) A capital project shall be considered completed for the purposes of determining unexpended bond proceeds under this section when:

1. The project has received its certificate of completion from the contractor;

2. All retainage has been liquidated; and

3. A permanent certificate of occupancy has been received, if applicable.

(b) Any school bonds proceeds that remain unspent upon completion of the capital project shall be disposed of by the school district in accordance with 18A:24-47 et seq. if issued by the school district for a school facilities project prior to July 18, 2000, and where the school district received no funding pursuant to EFCFA except for funding received pursuant to N.J.A.C. 6A:26-13.1(b), or issued for an other capital project.

1. Unexpended balances may remain in the capital projects fund for six years after the time of issuance or sale of bonds pursuant to 18A:24-48 and 51.

2. Within six years of issuance or sale, if a new purpose(s) for the unexpended balances is determined, the board of school estimate, capital project review board, or voters may approve the change in purpose by resolution or ballot question pursuant to 18A:24-48 through 52.

i. The resolution or ballot question for the new purpose shall receive Commissioner approval pursuant to 18A:24-49 through 52 if the bonds mature beyond the period prescribed for the new purpose(s) by N.J.S.A 18A:24-5.

3. If no new purpose for the unexpended balances is determined within the six years from issuance or sale, the district board of education shall transfer by resolution the funds to either the general fund or debt-service fund.

i. To establish there is no new purpose, the school district's budgeted appropriations and actual expenditures for the transfer year may not reflect capital outlay spending.

4. After six years from issuance or sale, unexpended balances shall be transferred by resolution to either the general fund or the debt-service fund.

(c) Proceeds of school bonds issued by the school district or other revenue sources transferred to the capital-projects fund, pursuant to 6A:26-4.1, for the purpose of funding all or part of the costs of ROD school facilities projects that remain unspent upon completion of the school facilities projects and/or other capital projects whose funding was authorized by the bonds shall be used by the school district to reduce the outstanding principal amount at the earliest call date or to annually reduce the debt service principal payments. The provision shall apply if any school facilities project funded by the school bonds receives the State share of eligible costs.

1. If the unexpended proceeds are used annually to make debt-service-principal payments, the proceeds shall remain in the capital projects fund and be appropriated in each subsequent year's budget certified for taxes to reduce in full each year the debt-service-principal payment until the proceeds are exhausted.

2. Use of unexpended bond proceeds to make principal payments shall be used in the determination of State debt service aid pursuant to N.J.A.C. 6A:26- 3.8, if applicable.

N.J. Admin. Code § 6A:26-4.6

Amended by R.2004 d.214, effective 6/7/2004.
See: 36 N.J.R. 243(a), 36 N.J.R. 2733(b).
Rewrote (c); in (d), inserted "or projects," following "facilities project".
Amended by R.2007 d.81, effective 3/19/2007.
See: 38 N.J.R. 4533(a), 39 N.J.R. 899(a).
Inserted "school" preceding "district" throughout; and in (b)3i and (d), 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).
In the introductory paragraph of (a), substituted "shall be" for "is"; rewrote the introductory paragraph of (b), and (b)3 through (c); and deleted (d).