Finance
The Mendham Township School District worked closely with its professional advisors on a package of improvements that would maximize state funding and lead to an average school debt tax decrease of $97.
State aid would contribute 37% toward project costs -- a significant savings for local tax bills.
Strategic Budgeting: Bond Referendum
A voter-approved bond referendum supports the district's financial strategy by:
Generating upfront funding for facilities projects that will benefit the district for years to come
Spreading costs over time, similar to the way a homeowner uses a home equity loan to make improvements or a business borrows funds to spur advancement
Tapping into state aid earmarked only for districts in New Jersey that have voter-approved bonds
Proactively planning for the district’s long-range needs to ensure facilities are well maintained
The new debt will be a lower amount than the expiring debt, so taxpayers would see a $97 per year school debt tax decrease for a home assessed at Mendham Township’s average of $905,519. This would appear on property tax bills starting in 2023.
"The district works hard to present taxpayers with a fiscally responsible school budget each year. This bond referendum continues our strategy of maintaining our facilities to reduce the need for costly emergency repairs in the future."
- Dr. Salvatore Constantino, Superintendent
Project costs are estimated at $19,903,197. This includes everything from construction and renovation costs to permitting fees and a contingency in case prices rise. The district cannot spend more than the amount the voters authorized in the bond referendum, and can only spend on the items included in the proposal.
State aid is estimated at $7,390,396.80. The Department of Education has committed to paying that amount over the length of the pay-back period. Without bond approval, the price of key maintenance projects, such as roof replacements and security upgrades, would fall 100% on local tax bills.
Assessed Value Explained
A home’s assessed value is used to calculate taxes and is listed on a homeowner’s annual property tax bill. Assessed value is different – usually much less – than a home’s market value.