BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT’D.)
A schedule of annual debt service for future principal and interest for serial bonded debt is as follows:
Cash Basis
General Sewer Utility
Year Principal Interest Principal Interest Total
2023
$1,740,000.00
$513,961.54
$60,000.00
$26,700.00
$2,340,661.54
2024
1,655,000.00
474,521.26
60,000.00
24,300.00
2,213,821.26
2025
1,435,000.00
421,056.26
60,000.00
21,900.00
1,937,956.26
2026
1,460,000.00
378,018.76
65,000.00
19,500.00
1,922,518.76
2027
1,075,000.00
333,675.00
65,000.00
16,900.00
1,490,575.00
2028-2032
5,390,000.00
1,110,862.50
350,000.00
52,500.00
6,903,362.50
2033-2037
3,320,000.00
377,800.00
300,000.00
15,000.00
4,012,800.00
$16,075,000.00
$3,609,895.32
$960,000.00
$176,800.00
$20,821,695.32
A schedule of annual debt service for future principal and interest for other debt is as follows:
Cash Basis
General NJEIT Loan General SCIA Lease
Year Principal Interest Principal Interest Total
2023
$225,194.13
$26,857.50
$109,439.14
$20,221.89
$381,712.66
2024
225,194.13
24,357.50
111,123.76
18,092.77
378,768.16
2025
230,194.13
21,857.50
112,846.50
15,925.53
380,823.66
2026
235,194.13
19,107.50
119,608.23
13,565.55
387,475.41
2027
235,194.13
16,107.50
80,477.19
11,011.95
342,790.77
2028-2032
1,210,970.65
44,550.00
235,000.00
39,819.50
1,530,340.15
2033-2037
245,194.22
4,195.00
240,000.00
11,458.75
500,847.97
$2,607,135.52
$157,032.50
$1,008,494.82
$130,095.94
$3,902,758.78
Loan Agreements
Capital Equipment and Improvement Revenue Bonds, Series 2016

The Borough entered into a capital equipment lease agreement with the Somerset County Improvement Authority – Capital Equipment and Improvement Revenue Bonds, Series 2016 in the amount of $830,000.00 for the Parking Lot Project. The loan obligation was due in twenty annual installments with remaining principal payments spread over a seventeen year period with amounts ranging from $30,000.00 through $65,000.00 and interest rates ranging from 1.27% through 2.45%.

Capital Equipment and Improvement Revenue Bonds, Series 2016

The Borough entered into a capital equipment lease agreement with the Somerset County Improvement Authority – Capital Equipment and Improvement Revenue Bonds, Series 2016 in the amount of $808,000.00 for the Purchase of a Fire Truck The loan obligation was due in twenty bi-annual installments and remaining principal payments spread over an eight year period with amounts ranging from $36,192.28 through $40,477.19 with an interest rate 2.25%.

The SCIA Loans above have been included in the calculation of the Borough's statutory debt condition.

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