BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
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 1.98% at December 31, 2022:
| 2022 | Gross Debt | Deductions | Net Debt |
|---|---|---|---|
| Local School District Debt | $10,875,000.00 |
$10,875,000.00 |
$- |
| Sewer Utility Debt | 4,960,500.00 |
4,960,500.00 |
- |
| General Debt | 29,840,322.87 |
1,651,238.88 |
28,189,083.99 |
$45,675,822.87 |
$17,486,738.88 |
$28,189,083.99 |
Net Debt $28,189,083.99 Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended $1,424,070,244.67 = 1.98%
amended $1,424,070,244.67 = 1.98%
| 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 $23,624,825.28 Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended $1,340,580,096.00 = 1.76%
amended $1,340,580,096.00 = 1.76%
Summary of Statutory Debt Condition - Annual Debt Statement Borrowing Power Under N.J.S.A.40A:2-6 as Amended
| 2022 | 2021 | |
|---|---|---|
| 3 1/2% of Equalized Valuation Basis Municipal | $49,842,458.56 |
$46,920,303.36 |
| Net Debt | 28,189,083.99 |
23,624,825.28 |
| Remaining Borrowing Power | $21,653,374.57 |
$23,295,478.08 |
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