Area schools get money for new roofs, energy projects

Next year is likely to be a good one for companies that provide roofing and HVAC systems for New Jersey schools.

The state Schools Development Authority this month announced almost $508 million in funds for 1,538 construction projects in 331 school districts. The majority of the projects address health, safety and energy efficiency issues such as roofing, ventilation, heating systems and security.

Local district officials welcome the funds, though they are a bit wary about whether a bill for the grants might come due down the road.

Schools in Atlantic County will get $19.5 million toward 45 projects in 13 districts. Cape May County will get $5.8 million for seven projects in six districts. Cumberland County will get almost $296,000 to support six projects in three districts, and Ocean County will get $26.5 million for 90 projects in 12 districts.

The money represents at least 40 percent of the total cost of eligible projects in regular operating districts. Funds for the 31 districts labeled special-needs by the SDA, including Pleasantville, Vineland, Millville and Bridgeton, are allocated separately.

School districts submitted proposals for projects, and some still may have to go out to the voters for approval if they intend to borrow money through bond referendums for their projects. But with voters skittish about spending, several school officials said they have been saving money in capital reserve accounts for their projects and will be able to fund them without borrowing.

Galloway Township received $2.4 million toward a $4.3 million project to replace roofs at Roland Rogers and Smithville elementary schools, and fire alarm systems at the Reeds Road, Roland Rogers and Smithville schools.

The district twice asked voters to approve bonding the projects and was rejected both times. Galloway Superintendent Annette Giaquinto said the district instead has been putting money aside each year, and replaced the roof and storm-water drainage systems at Arthur Rann Elementary School last summer. The state grants will allow them to complete the other projects.

Hammonton school board President Joseph Giralo said his district will have work done on the middle school’s HVAC system, including air conditioning. The district will get almost $2 million in state funds toward the $3.5 million project.

“We are using surplus we set aside for the project,” he said. “There will be no tax impact on local taxpayers.”

Wildwood school Business Administrator Martha Jamison said her district will do a five-year lease-purchase on its share of the almost $1.3 million it will cost to replace the roof on the high school and middle school. The state will contribute $508,000.

“The old roof has been patched but still leaks,” she said. “But there will be no bond. They never get approved here. The grant is our only opportunity to get this done.”

While the funds are considered grants, the SDA in 2011 began requiring school districts to pay 15 percent of the interest payment on the bonds taken out by the state to fund the grants. That makes some district officials a bit nervous, since they don’t know how much that could be down the road.

State Department of Education spokesman Mike Yaple said no decision has been made on requiring districts to pay back part of the grants next year, but school officials said they will have to plan for it in their budgets anyway.

“The state hasn’t said anything yet about a payback, but we do expect to have to pay a share,” Egg Harbor City Business Administrator Joseph Smurlo said.

Several local districts, including Egg Harbor Township and Egg Harbor City discovered this year that the SDA debt payment negated the extra state aid they received.

“There was nothing in the old contracts about that payment, so we’ll have to wait and see what is in the new contracts,” Smurlo said.

Egg Harbor City is getting $813,000 of an almost $1.2 million project to replace the roof and upgrade the HVAC at the Spragg School. Smurlo said the district has saved about $239,000 of its share, and he hopes to save the rest this year so the project can be done over the summer.

Other local work includes a $24 million project to replace windows and doors and upgrade the fire alarm and HVAC systems at Cape May Technical High School.

“We’ve had this in the plans for years,” Superintendent Nancy Hudanich said.

Middle Township will spend $1 million to finish a roof project at the middle school and replace the HVAC system. Business Administrator Diane Fox said the school board had not yet decided how it will fund the district’s share of about $600,000.

Districts have 18 months to either bond or raise their share of the funds.

Little Egg Harbor Township got $500,000 toward a $1.25 million project to repair the veneer on the Frog Pond School and add new security cameras. Superintendent Frank Kasyan said the district will either do a lease-purchase or try to use surplus, but it will not bond.

Buena Regional was approved for $4.3 million in state funds toward almost $7 million in projects, including new HVAC at the Milanesi and Colllings Lakes schools and security at the middle school.

Buena Regional Superintendent Walter Whitaker said the school board would discuss which projects the district can do with its surplus and capital reserve funds, and what might require a bond referendum.

Several district officials said they were not approved for all requested projects, and they had not been notified by the state how the funds were allocated. Many districts did not get all of their projects approved but can resubmit them for state debt service aid.

Northfield submitted several applications but was approved for just two, a new HVAC system and new exterior doors with a keyless entry system, totaling $4.1 million. Those not approved include new roofing, interior doors and additional security and outdoor lighting, Business Administrator Linda Albright said.

Northfield Superintendent Janice Fipp said district officials are happy with the $1.7 million they will receive from the state.

While all were grateful for the funds, there was some speculation on the impact of announcing funds for so many similar projects at once, especially since many districts will try to get the work done over the summer.

“It is a shame it all comes at once, because it’s likely to drive up the prices when we all go out for bid,” Smurlo said. “But the roof is a high priority for us.”

Source: PressofAtlanticCity.com