Borough of Somerville

Note 14: INTERFUNDS (CONT’D)

These interfund balances are not an indication that the respective fund cannot meet its obligation. The interfund amounts are reflective of year-end closing journals and adjustments. The balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

Note 15: GASB 77 TAX ABATEMENTS

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
Cobalt	January 30, 2015	January 30, 2035	$201,794.24	$645,992.49	$444,198.25
Soma	February 9, 2017	February 9, 2037	113,242.57	359,896.56	246,653.99
6 North Doughty	February 23, 2018	February 23, 2038	38,535.85	101,838.85	63,303.00
46 E Main - Desapoi	August 15, 2016	August 15, 2036	77,779.17	394,573.83	316,794.66
Davenport	March 20, 2018	March 20, 2038	84,060.13	757,035.73	672,975.60
Somerville Town Center	May 27, 2020	May 27, 2040	492,302.40	1,028,931.99	536,629.59
			$1,007,714.36	$3,288,269.45	$2,280,555.09

Note 16: GOVERNMENTAL FIXED ASSETS

The Borough’s governmental fixed assets are reported as follows:

	Balance December 31, 2021	Increases	Decreases	Balance December 31, 2022
Land	$10,571,500.00			$10,571,500.00
Buildings/Improvements	10,498,600.00			10,498,600.00
Equipment	7,324,723.00	$400,414.00	$724,910.00	7,000,227.00
	$28,394,823.00	$400,414.00	$724,910.00	$28,070,327.00

	Balance December 31, 2020	Increases	Decreases	Balance December 31, 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

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2022 AND 2021