We strive to make Middle Township Public Schools a great value for our community. In fact, Middle Township’s cost per pupil is less than any other district in Cape May County.
The district takes good care of its buildings and grounds, but current needs go beyond routine maintenance. Improvements such as HVAC upgrades and building additions fall outside the scope of the annual budget, which must cover day-to-day operations.
State aid helps offset local share
MTPS is approaching a bond referendum as a proactive strategy, like a homeowner would take out a home equity loan to make renovations.
One key advantage is the availability of state aid: New Jersey shares in the cost of school improvements when a community approves a bond referendum.
If Middle Township’s vote passes, the state will pay $3 million toward $26.5 million in improvements. That offsets the amount that will be needed from local property taxes.
Once the state funding is factored in, the estimated tax impact is $165 per year for the owner of a home assessed at the Middle Township average of $251,010. The amount would begin appearing on tax bills in 2026.
The state revenue for school improvements is collected from all NJ taxpayers, but residents only benefit if their community passes a referendum.
Assessed value vs. market value
Most people are familiar with the market value of their homes, as that’s the basis for the price of buying and selling a property.
The assessed value is assigned by a resident’s local municipality, and it determines property taxes. The tax impact for school debt is based on assessed value. Assessed value is different than and typically lower than market value.
Assessed value can be found in the database NJpropertyrecords.com. Enter your address and click to find your “assessment total.”
Bond borrowing offers benefits
A bond referendum asks voters if a school district can borrow money by selling bonds, and then repay the debt over time with property taxes – and the help of state aid. The funding structure offers several advantages for MTPS:
- With voter approval, the state will contribute $3 million that would not otherwise be available.
- The district receives upfront funding to make improvements as quickly as possible, but can spread the cost over time. MTPS would make payments over a 20-year bond term.
- Bond borrowing is subject to a competitive bidding process, just like construction contracts, to ensure that school districts get the lowest interest rate.
- School districts qualify for tax-exempt bond interest rates that are lower and less impacted by market conditions than other lending rates, such as for mortgages. MTPS’s financial advisors conservatively estimate a 4.25% interest rate for bonds, which would not be sold until after a successful vote.
- Bonds can be refinanced if a lower interest rate is available during the loan term.
Seniors may qualify for property tax relief
New Jersey offers a “Senior Freeze” program that provides property tax rebates to some senior citizens and people with disabilities. Once applicants are approved, their property taxes are “frozen,” and they will receive reimbursements on any increases beyond that point. That includes increases related to a school bond referendum.
Eligibility requirements include:
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- Owning and living in your home since Dec. 31, 2019
- Age 65 or older as of Dec. 31, 2022
- Total income of $150,000 or less in 2022, and $163,050 or less in 2023
More information is available on the Senior Freeze webpage or by calling (800) 882-6597.
Here’s how to learn more
Stay up to date on the MTPS bond referendum by checking this website regularly. Information will also be shared through social media, local news outlets and printed materials. The district will host a community-wide Q&A event later this summer.