BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT’D.)
The summarized statement of debt condition which follows is extracted from the Borough's Annual Debt Statement and indicates a statutory net debt of 1.76% at December 31, 2021:
| 2021 | Gross Debt | Deductions | Net Debt |
|---|---|---|---|
| Local School District Debt |
$
10,235,000.00
|
$
10,235,000.00
|
$
-
|
| Sewer Utility Debt | 5,020,500.00 | 5,020,500.00 | - |
| General Debt | 25,359,975.00 | 1,735,149.72 | 23,624,825.28 |
|
$
40,615,475.00
|
$
16,990,649.72
|
$
23,624,825.28
|
Net Debt $24,207,176.28 Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended
$1,340,580,096.00 =
1.76%
| 2020 | Gross Debt | Deductions | Net Debt |
|---|---|---|---|
| Local School District Debt |
$
11,800,000.00
|
$
11,800,000.00
|
$
-
|
| Sewer Utility Debt | 5,125,500.00 | 5,125,500.00 | - |
| General Debt | 27,607,696.87 | 1,884,467.91 | 25,723,228.96 |
|
$
44,533,196.87
|
$
18,809,967.91
|
$
25,723,228.96
|
Net Debt $25,723,228.96 Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended
$1,298,990,910.33 =
1.98%
Summary of Statutory Debt Condition - Annual Debt Statement Borrowing Power Under N.J.S.A40A:2-6 as Amended
| 2021 | 2020 | |
|---|---|---|
| 3 1/2% of Equalized Valuation Basis Municipal | $46,920,303.36 | $45,464,681.86 |
| Net Debt | 23,624,825.28 | 25,723,228.96 |
| Remaining Borrowing Power | $23,295,478.08 | $19,741,452.90 |
School Debt Deductions
School debt is deductible up to the extent of 4.0% of the Average Equalized Assessed Valuations of real property for the Local District