BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
The Local Bond Law governs the issuance of bonds and notes to finance general capital expenditures. All bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by the City are general obligation bonds, backed by the full faith and credit of the Borough. Bond anticipation notes, which are issued to temporarily finance capital projects, must be paid off within 10 years and 5 months or retired by the issuance of bonds.
The Borough’s debt as of December 31st is summarized as follows:
Summary of Municipal Debt (Excluding Current and Operating Debt)
Summary of Municipal Debt for Capital Projects
| 2022 | 2021 | |
|---|---|---|
| Issued: | ||
| General: | ||
| Bonds and Notes | $22,735,000.00 |
$19,790,000.00 |
| S.C.I.A. Capital Leases | 1,008,494.82 | 1,111,286.62 |
| NJEIT Loans | 2,607,135.52 | 2,827,329.65 |
| Sewer Utility: | ||
| Bonds | 960,000.00 | 1,020,000.00 |
| Net Debt Issued | 27,310,630.34 | 24,748,616.27 |
| Authorized But Not Issued: | ||
| General: | ||
| Bonds and Notes | 3,489,692.53 | 1,631,358.73 |
| Sewer Utility | ||
| Bonds and Notes | 4,000,500.00 | 4,000,500.00 |
| Total Authorized But Not Issued |
7,490,192.53 | 5,631,858.73 |
| Bonds and Notes Issued and Authorized but not Issued |
$34,800,822.87 |
$30,380,475.00 |