Financial Strategy
GOOD FINANCIAL PLANNING
The last major investment in our schools will be paid off by 2027, around the time that the new debt would begin if voters approve the January 28 referendum. With voter approval, this timing would allow us to maintain and repair our schools while keeping the tax rate steadier over time.
STATE AID HELPS
Certain types of projects are eligible for state aid when approved through a bond referendum. That’s why the Board of Education focused on selecting the types of projects that would receive the maximum amount of aid – 1/3 of the project costs! That’s money that Pitman residents already paid to the state through taxes, and it would only come back to Pitman if the referendum passes. So, we either use that money in conjunction with bond borrowing, or we lose access to it.
QUESTION 1 - EFFICIENT AND WELL-MAINTAINED SCHOOLS
$14.2 million in improvements – State pays $4.8 million of that
$7 per month net tax increase
Net tax impact means that the average assessed home in Pitman ($238,209) currently pays approximately $128 per year for school debt. Those payments will gradually decline until 2027, around the time that the new debt payments would begin if voters approve the referendum. The difference between the current debt and the new debt is approximately $7 per month for Question 1.
QUESTION 2 - COMFORTABLE AND SECURE SCHOOLS
Builds on the Projects in Question 1
$7 million in improvements – State pays $2.4 million of that
$15 per month net tax increase for Question 1 and 2
Net tax impact means that the average assessed home in Pitman currently pays ($238,209) approximately $128 per year for school debt. Those payments will gradually decline until 2027, around the same time that the new debt payments would begin if the referendum is approved. The difference between the current debt and the new debt is approximately $15 per year for Question 1 and 2.
ASSESSED VALUE
Assessed value is used to calculate how much a person pays for taxes. Assessed value is different than market value and is typically much less.
Check your assessed value at https://njpropertyrecords.com/
SENIOR TAX FREEZE
The State of New Jersey has a current program for property tax relief and a new version in development.
-
Known as the "Senior Freeze," the current program offers property tax reimbursements for senior citizens and people with disabilities who qualify. More information is available on the Senior Freeze webpage or by calling (800) 882-6597.
- A second plan in development is called the Stay NJ Property Tax Credit Program. The plan is due to the Legislature by May 30, 2024, with a program start date of Jan. 1, 2026. Other current programs are the NJ $250 Senior Citizen Property Tax Deduction and the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR).