BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
The Borough has entered into several property tax abatement agreements in order to provide incentives to redevelop areas that are in need for improvement or to create economic growth. These agreements are authorized under various New Jersey state statutes. The following represent the Borough’s tax abatement agreements:
| Commencement | Termination | Pilot | Taxes if Billed | Abated | |
|---|---|---|---|---|---|
| Entity Name | Date | Date | Billing | In Full | Taxes |
| Somerville Town Center | May 27, 2020 | May 27, 2040 | $445,312.80 |
$1,022,230.19 |
$576,917.39 |
| Cobalt | April 6, 2020 | April 6, 2040 | 162,190.55 |
641,784.90 |
479,594.35 |
| 6 North Doughty | July 21, 2020 | July 21, 2040 | 37,032.24 |
101,175.54 |
64,143.30 |
| Soma | February 9, 2017 | February 9, 2037 | 83,767.41 |
357,552.42 |
273,785.01 |
| 46 E Main - Desapoi | March 20, 2018 | March 20, 2038 | 74,391.26 |
392,003.83 |
317,612.57 |
$802,694.26 |
$2,514,746.88 |
$1,712,052.62 |
The Borough’s governmental fixed assets are reported as follows:
| Balance | Balance | |||
|---|---|---|---|---|
| December 31, | December 31, | |||
| 2020 | Increases | Decreases | 2021 | |
| Land | $10,571,500.00 |
$- |
$- |
$10,571,500.00 |
| Buildings/Improvements | $10,498,600.00 |
$10,498,600.00 |
||
| Equipment | $8,424,125.00 |
$807,497.00 |
$1,906,899.00 |
$7,324,723.00 |
$29,494,225.00 |
$807,497.00 |
$1,906,899.00 |
$28,394,823.00 |
| Balance | Balance | |||
|---|---|---|---|---|
| December 31, | December 31, | |||
| 2019 | Increases | Decreases | 2020 | |
| Land | $10,571,500.00 |
$- |
$- |
$10,571,500.00 |
| Buildings/Improvements | $10,498,600.00 |
$10,498,600.00 |
||
| Equipment | $8,709,707.00 |
$272,153.00 |
$557,735.00 |
$8,424,125.00 |
$29,779,807.00 |
$272,153.00 |
$557,735.00 |
$29,494,225.00 |
The Borough has evaluated subsequent events occurring after December 31, 2021 through the date of August 22, 2022, which is the date the financial statements were available to be issued. Based on this evaluation, the Borough has determined that no subsequent event has occurred which requires disclosure in the financial statements.