The word “referendum” means vote, and a bond referendum asks voters to approve funding through the sale of bonds. Like a company’s stock certificates, bonds can be sold to investors. Property taxes are used to buy them back with interest. In this way, bonds can provide the school district with up-front funding to make long-lasting improvements similar to the way a homeowner might use a loan to renovate a kitchen. Property taxes are used to buy back those bonds, with interest. 

Sometimes consumers might think borrowing indicates poor planning and that it results in higher costs due to interest. The opposite is true for public school districts in New Jersey. They are eligible for a special kind of state aid that only comes with bond borrowing. Districts strategically plan to group projects into a bond referendum to take advantage of that aid – which can cover about one third of the costs. That keeps project costs off the local tax bills. For WTPS, the two questions on the Dec. 13 ballot could bring $22 million in new state aid. In fact, the Board of Education has had this opportunity on its radar for about five years: Pay off one debt, then start a new one to take care of necessary and expected maintenance with the benefit of state aid. It is a sign of fiscal responsibility, much like the “clean” independent audits of financial data that are posted on the district’s website. 

The State of New Jersey sets aside funds to help public school districts maintain their facilities. This special state aid for debt payback is given only to districts where voters committed to paying for improvements through bond borrowing. Wall taxpayers already contribute to the state funds that provide this aid; it will only come back to Wall through a voter-approved bond referendum. This state aid would cover about one third of the costs of all projects proposed through Question 1 and a smaller percentage of projects proposed through Question 2.

In 2019, professionals reviewed all WTPS facilities and identified $236 million in potential projects throughout all seven schools. However, the WTPS Board of Education’s vision of "no tax increase" called for trimming that list to about $53 million of priority projects – costs over that amount would cause a bump in the tax rate. There were several projects that still offered cost efficiencies, risk reduction and expanded student use, and the Board put some of those needs into a second question on the same ballot. Other projects identified in the initial review can either be put off and/or completed with general operating funds over many years.

Estimates as of December 1, 2022, put the cost of the special referendum at about $63,000. Determining the cost for a special voting event is a multi-step process. It is not a predetermined package price. There are multiple costs; some are not known until the process is underway and some not until after the vote is complete. WTPS gathered this information throughout the month of November. Additional cost estimates were available December 1 after the printing of ballots and the mailing of ballots.

The cost of this special referendum is less than 1% of the total value of improvements that would serve our students and community for decades.

Property taxes are based on assessed value, not market value. A homeowner might guess at his property’s market value based on recent sales of similar homes; that can change day to day. 

In contrast, property assessments are determined by Wall Township and sent each year to all property owners. They do not change throughout the year. You can find that on your tax bill, or search this database. The mathematical average of all home assessments in Wall is $483,357.

First, note that property taxes are based on assessed value, not market value; see the FAQ that explains that. Financial advisers estimated a bond proposal’s “tax impact” for a theoretical home with a property assessment that is the mathematical average of all Wall Township homes. In 2022, that is $483,357. If your home’s assessment is higher or lower, a quick calculation can help you estimate your tax impact.

Question 1: The tax impact per $100,000 of assessed property is currently $0.0383, and that would drop to $0.0371 if Question 1 passed. Multiply your property’s assessed value by 0.000371 to estimate your annual tax impact. ($483,357 x 0.000371 = $179 per year.) If Question 1 does not pass, the current debt tax will expire and result in a debt tax decrease of about $185 for a home assessed at the average. ($483,357 x 0.000383 = $185 per year.) For more about how the operating tax would likely rise, see the FAQ “What tax decrease could result in voter rejection of Question 1?

Question 2: If Question 1 and Question 2, the debt tax rate will go up from the current rate of $0.0383 per $100,000 of assessed property to the new rate of $0.012. That would result in a debt tax decrease of about $60 per year for a home assessed at the average. For a more personalized estimate, multiply your property’s assessed value by 0.00012 to find the annual tax impact. ($483,357 x 0.00012 = $58 per year.)

Wall is finishing payments on the last major improvements made to our schools, which voters authorized through a bond referendum in 1998. Renewing that current level of debt pay-off for 25 years would continue the cycle of repairing, replacing, and renovating that keeps WTPS maintained and Wall’s tax rate steady.

There is significant state oversight for bond-funded projects. WTPS can only spend the amount of money approved by voters, and can only spend that on projects described on the ballot and the detailed documentation provided to the state Department of Education. If costs for those projects end up being lower than the voter-approved amount, that money is used to reduce debt, and thus, reduce taxes.

Because WTPS can only spend the amount of money approved by voters, the district’s architects thoroughly research projects and use their considerable market knowledge to conservatively estimate costs. State rules require that they plan for potential increases in costs or other unforeseen circumstances. Estimates include a margin in case costs exceed what voters approved, and in that case the district would have to adjust project details while meeting the intent of the referendum. 

The NJ Department of Education oversees the process of public schools using bond funding. School districts can only spend the amount of money approved by voters and only on projects described for the referendum. Bond funding cannot be used for salaries or other everyday operating costs. It can only be used for long-term capital expenses.

The current WTPS debt tax rate is about $185 per year for a home assessed at Wall Township’s average. That will end after the district pays off existing debt in the 2023-24 school year. If voters approve Question 1 on the Dec. 13 ballot, that level will continue and the district will invest $53.1 million in improvements. If Question 2 is also approved, the owner of a home assessed at the average would pay about $5/month more than the current level.

 

If voters reject Question 1, the debt tax rate would expire and that homeowner would pay about $15/month less in the short term. The debt tax rate would fall, but the operating tax would likely rise. That’s because WTPS would still need to replace outdated building systems, repair and replace roofs, and make other high priority upgrades. However, the district would have to pay for those without the benefit of state aid and instead cover those costs from the operating budget that is fueled by local taxes.

 

The payoff amount is projected to drop slightly over the 25-year life of the bond proposed to pay for Question 1 projects. On a home assessed at Wall’s average: The current debt costs $185 per year; the new debt payoff would start at that rate; and in later years that payoff would cost about $160-$170 per year. Over 25 years, the tax impact of the proposed improvements in Question 1 would average to $179 per year – a slight decrease from current taxes.

Estimates make up the many numbers of a plan for bond funding. Those are compiled by financial advisors who monitor the bond market and other factors so they can drill down to a “tax impact” estimate. An interest rate of 4.3% is estimated for the bond interest rate, with a pay-off term of 25 years.

For Question 1: Assuming bonds to borrow the $53,078,000 (the estimated cost of improvement projects), the total amount to be paid back with interest is estimated at $87,333,378. State aid is committed to paying up to $18,046,769 of the project costs. That is 34 percent of the Question 1 project costs. State aid will also pay 34% of the interest as the debt is paid off. Estimates put the total state aid at $29,693,920 for both the project costs and the interest.

Q1 costs of projects and interest = $87,333,378

Q1 state aid for projects and interest = $29,693,348

After state aid, the local costs of projects and interest = $57,640,030

For Question 2: Assuming bonds to borrow the $ 13,520,000 (the estimated cost of improvement projects), the total amount to be paid back with interest is estimated at $22,114,063. State aid is committed to paying up to $2,009,807 of the project costs. That is a 12.81 percent of the Question 2 project costs – less than Question 1’s aid percentage because athletic facilities rarely qualify for this benefit. State aid will also pay 12.81% of the interest as the debt is paid off. Estimates put the total state aid at $ 2,831,786 for both the project costs and the interest.

Q2 costs of projects and interest = $ 22,114,063

Q2 state aid for projects and interest = $ 2,831,786

After state aid, the local costs of projects and interest = $ 19,282,277

A synthetic turf field would be added to Wall High School athletic facilities, most likely inside a new running track at Wall High School, if voters approve the bond referendum. A synthetic turf field with multiple line markings would provide additional opportunities for soccer, lacrosse and field hockey teams to play on their school campus. The varsity stadium field would keep its natural grass surface. New LED lights for that field would be more energy efficient and brighter, and they would have hoods to better direct that lighting onto the field. Other fields that are natural grass would be improved with regrading to smooth playing surfaces and improved measures for water drainage. Specific plans for these improvements will require further site studies to determine how the space could be utilized best.

Wall Township voters last approved a bond referendum in 1998. Funding went toward building additions at every school except Primary, as well as replacing/repairing roofing and the heating, ventilation and air conditioning (HVAC) systems at numerous buildings. Building expansions made then are integral to operations today, such as cafeterias at West Belmar, the Intermediate School and High School. Art and music rooms, media centers and guidance offices were all expanded or created with that last improvement. However, roofing and HVAC systems that were installed 20-plus years ago are no longer covered by warranty. They are at, near, or beyond their expected lifespans. School districts often align these kinds of significant, recurring system upgrades with a bond funding cycle to capture state aid. 

The Board of Education continually plans for school repairs, renovations and upgrades within the usual operating budget. Smaller-scale projects such as a STEM Lab or a minor field improvement, can be handled within that budget. To set priorities for future improvements, WTPS will continue its strategic planning process in 2023 with community input.

 

The Board of Education has completed projects that were either high priorities that could not wait for the timeline of a bond referendum, or would not have been eligible for the kind of state aid that comes from a voter-approved referendum. Over the past decade, WTPS has budgeted at least $10 million on capital improvements with funding from the operating budget rather than bonds. Recent improvements include the installation of alarm systems in each school to improve overnight security; placement of more advanced security cameras; and the addition of air conditioning for portions of Allenwood and Central schools and the South Gym at Wall High School. 

Approval by voters on December 13 would start the multi-year timeline for repairs and renovations. Architects would determine the timeline based on availability of contactors, equipment, and supplies. Work could be concentrated in summers to avoid disruption of academic and athletic schedules. Early targets put completion in late 2025.

Every Wall Township resident benefits from having strong public schools, regardless of whether they have children enrolled. Public schools are a primary consideration for people when looking for a place to live, according to a realtor.com survey.

Additionally, costly repairs and replacements of crucial school infrastructure like roofs and HVAC systems could be more easily avoided with bond funding to keep them up-to-date. Otherwise, those repairs and replacements would fall entirely on local tax bills without the added benefit of state aid. New roofs would be better insulated for improved climate control, and modernized HVAC would be more cost-efficient on an everyday basis.

meet guidelines of the Americans with Disabilities Act (ADA). The complete overhaul of Wall Intermediate School’s boys’ and girls’ locker rooms would also meet those standards. At Allenwood Elementary School, a new parking area would be created with easier building access for people who have mobility difficulties.

Most of the restrooms proposed for renovation are from original building construction from the 1950s or earlier, and they do not meet guidelines of the Americans with Disabilities Act (ADA). Restrooms that had been renovated to meet ADA standards, but were outdated in terms of aesthetic design, are not proposed for upgrades. With voter approval, the targeted restrooms would be overhauled with new floors, new finishings, water-saving touchless faucets, sensors for lighting, and improved air exchange.

 

WTPS leadership is aware of the housing units in various stages of development throughout Wall Township. Recent demographic studies show the district is under capacity, from an overall perspective. While two of our elementary schools are maximized or nearly so, two of them do have space to accommodate some growth. We are monitoring whether new housing developments actually translate to increased enrollment. If that happens, our first step would be to maximize the use of our current building capacity. In the meantime, the building projects proposed through this referendum are Priority 1 needs and they must be completed regardless of what happens with enrollment.

Wall Township Public Schools will follow the rules for all government contracts – state, county, local or school district. The work may be divided into several subsets. Projects are announced through a public bid process, and contractors submit sealed price bids. The Board of Education will open those bids in an advertised, public meeting. By state law, any contract that is issued must be awarded to the company that submitted the lowest bid.

Estimates as of December 1, 2022, put the cost of the special referendum at about $63,000. Determining the cost for a special voting event is a multi-step process. It is not a predetermined package price. There are multiple costs; some are not known until the process is underway and some not until after the vote is complete. WTPS gathered this information throughout the month of November. Additional cost estimates were available December 1 after the printing of ballots and the mailing of ballots.

The cost of this special referendum is less than 1% of the total value of improvements that would serve our students and community for decades.

In-person voting will be available to registered voters on Tuesday, December 13. 

Polls will be open from 6 a.m. to 8 p.m. at the sites listed here. If you don’t know the voting district to which you are assigned, find your polling place by doing an internet search for “NJ where do I vote” or
click here.

Residents of Wall who are registered to vote can participate in the bond referendum. The deadline for voter registration is Tuesday, Nov. 22. See our Voter Info page for more details and the forms necessary to register to vote and to apply for a vote by mail ballot. If you are not sure if you are registered with your current name and Wall Township address, search New Jersey's voter database using your name and date of birth.

This website is the best place to learn more about the December 13 bond referendum. Additionally, the Board is sharing information with voters through an informational video. Architects made a full presentation at the Board of Education meeting at 7 p.m. Tuesday, Nov. 15 at the Wall High School Cafeteria. WTPS will host a Virtual Forum from 7 to 8:30 p.m. on Thursday, Dec. 1, with opportunities for public questions and answers.

You can search the voter database using your name and date of birth. If you are not registered with your current name and/or address, you can register to vote online or print and mail a paper form in English or Spanish. To vote in the December 13 special election, you must be properly registered by Nov. 22. 

There are many steps to scheduling a bond referendum, and one of them is approval by the NJ Department of Education. Districts cannot act without that. Additionally, the state allows just five specific dates for voting: January, March, September, December, and the general election date in November. WTPS did not have state approval in time to schedule a referendum before the Dec. 13 date.

The WTPS Board of Education focused on must-do projects that were eligible for the most state aid and, with that aid, would keep the net cost low enough to avoid a tax increase. Those are proposed through Question 1: maximum state aid, no tax increase. A second question includes additional building upgrades and the Wall High School athletic facility improvements. Question 1 must pass for Question 2 to pass. If voters reject Question 1 but approve Question 2, neither proposal would be valid.

Any resident who is at least 18 years old and lists Wall Township as a permanent address can vote in this referendum. Even if that registered voter is away at college or another temporary location, he or she can apply for a mail-in ballot in English or Spanish to participate. 

If you previously applied to vote by mail, you might automatically receive a ballot in the mail for this election. Be on the lookout for those ballots ahead of the Dec.13 election. 

To ask for a vote by mail ballot to be sent to you for this referendum, your application must be received by the county by Dec. 6. It’s advisable to send it in earlier to avoid postal delays. You can also submit the Application for Vote-By-Mail Ballot in person up until 3 p.m. the day before the election. Do that at the Monmouth County Clerk's Office: 300 Halls Mill Road in Freehold.

Applications are available in English and Spanish. All vote by mail ballots must be postmarked by Dec. 13, or hand-delivered to the Monmouth County Board of Elections. Those ballots will not be accepted at in-person polling locations.

More information about voting by mail is available at the Monmouth County Votes website.

If you arrive at a polling place and are told you are ineligible to vote because you are registered to vote by mail, or for any other reason, request a provisional ballot. Filling out a provisional ballot preserves your right to vote. Those ballots will be counted once officials have a chance to confirm eligibility. (Your provisional ballot will be counted later if you are registered to vote by mail but didn’t send in your ballot.)