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Borrowing bonds allows New Jersey school districts to complete projects at a significant cost advantage. Revenue collected from across New Jersey creates a dedicated fund that is only available to districts with voter-approved bond referenda. The approval of voters in 2023 means Shrewsbury is bringing this money back to the borough to invest in the school district.
The Strategy
The Shrewsbury Borough School District, in collaboration with its professional advisors, carefully considered how to fund critical maintenance, safety and security upgrades, and a classroom addition to keep class sizes small. A bond referendum provided a smart financial path by generating up-front funding and allowing the district to access an exclusive type of state aid.
Since the district paid off debt from the last bond referendum in 2023, it was the perfect time to invest in needed repairs and renovation.
The Tax Impact
The tax impact is about $44 per month, or $529 per year, for a home assessed at Shrewsbury's average of $580,785. This is the "net tax impact" because the district will finish paying off debt in 2023 from the last bond referendum and will simultaneously take on new debt if the bond referendum passes.
Residents saw this change reflected on their tax bills in 2023.
Meeting the essential needs of our students and staff means looking to the future; this approved referendum provides a fiscally responsible way for our community to continue investing in excellence.
Assessed Value
Assessed value shows up on a homeowner’s annual property tax bill and is used to calculate how much that person pays for taxes.
Assessed value is DIFFERENT than a home’s market value; it is typically much less.
State Aid
The projects, which are now under way, are estimated to cost $22,517,820. That figure accounts for everything: construction, renovation and replacement costs, permits, and of course, a contingency if prices increase. With the approval of the bond referendum, the district can only spend the approved amount of money and only on projects included in the referendum.
State aid resulted in about $4,762,804 to help offset the costs of the project.
The Value
Every Shrewsbury resident benefits from having a strong public school in town. Public schools are a primary consideration for people when looking for a place to live, and home market values in Shrewsbury (and every town) directly reflect the quality of local public schools.
"One out of five home buyers said they would pay six to 10 percent above their budget for the right school. One out of 10 would double that to 20 percent. Considering that premium could approach $100,000 in a lot of markets, it makes you wonder: How much investment in a school district is appropriate?"
- Realtor.com article "How Much Do School Districts Affect Real Estate Prices?"
NJ Senior Tax Freeze
NJ offers a property tax rebate for seniors and people with disabilities who meet income eligibility requirements. The state provides a rebate if property taxes increase. Find forms online or call the state's hotline at 1-800-882-6597.
Visit The Plan page for more information!
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