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HOW MUCH CAN I EXPECT TO PAY?
HOW MUCH CAN I EXPECT TO PAY?
Mendham Borough School District is paying off a past investment in the schools. Because of that, the property tax rate for school debt will drop. The Jan. 28 referendum proposes that tax level continue (Question 1) or slightly increase.
If voters approve Question 1: The owner of a home assessed at the average can expect an estimated property tax decrease of $6 per month. That’s because the entire investment proposed in Question 1 amounts to a lower tax payment than what is currently assessed for school debt. The new debt would almost completely replace the old debt for a nearly level tax rate.
If both questions pass: The owner of a home assessed at the average can expect to pay a total increase of about $22 per month, compared to what is paid now for school debt. Question 2 can only go into effect if Question 1 is also approved by voters.
Those estimates:
Factor in the $3.39 million in state aid that can only come to Mendham Borough through a voter-approved bond referendum.
Are based on a home assessed at the mathematical average in Mendham Borough ($693,518).
This investment would be spread across all taxpayers for the 25-year bond term.
Assessed value is different from - and often less than - market value. Find your home’s assessed value at njpropertyrecords.com.
statE aid woUld offsET THE LOCAL TAX IMPACT
statE aid woUld offsET THE LOCAL TAX IMPACT
State aid is collected from all New Jersey taxpayers and is only available to public school districts that have voter approval of a bond referendum. If voters approve the Jan. 28 Mendham Borough School District referendum, the district would receive significant state aid to help offset the local tax impact.
Proposed projects in Question 1 total $9,964,305 and are eligible for $3,387,863.70 in state aid. The proposed projects in Question 2 total $9,317,520 and are not eligible for state aid.
Mendham Borough Board of Education and administration felt it was extremely important to separate this vote into two questions to allow the community to have a choice when it comes to projects.
All projects proposed in Question 1 qualify for the state’s financial aid program that could bring more than $3.3 million to Mendham Borough.
The auditorium proposed in question 2 would be well used by students and the community, though it would not be as tied to the core of our academic focus as the projects in Question 1.
Remember: Question 2 can only go into effect if Question 1 is also approved by voters.
what is NEt tax impact?
what is NEt tax impact?
Mendham Borough Board of Education strategically timed this referendum to coincide with debt being paid off from a previous referendum.
Net tax impact refers to the fact that this debt will be expiring, while new debt simultaneously is added.
The net tax impact is what property owners would see on their tax bills in 2026.
The only way to access $3.3 million in state aid is through a voter-approved referendum.
QUESTION 1:
Improvements estimated at: $9.96 million
State Aid reduces the amount on local taxes: $3.39 million
Local Share left after state aid is factored in: $6.57 million
Local tax impact: Voter approval would still result in a lower new tax rate as an older tax ends.
QUESTION 2:
Improvements estimated at: $9.32 million
The proposed auditorium is not eligible for state aid.
Total local tax impact: Voter approval of both questions would result in a net tax increase of $22 per month for a home assessed at Mendham Borough’s average.
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