In which fund is gross utility debt reflected?

The gross utility debt is reflected in the Utility Capital Fund because this fund is specifically designed to account for the financing of capital projects related to utility services. When municipalities in New Jersey incur debt to finance utility projects such as water and sewer systems, the associated debt is recorded in the Utility Capital Fund. This ensures that the financing and expenditures related to utility capital assets are properly tracked and managed.

The Utility Operating Fund, in contrast, is used for the day-to-day operational expenses of utility services rather than capital projects or deferred financing. The General Capital Fund is typically reserved for general municipal capital projects unrelated to specific utility services. Lastly, the Debt Service Fund is primarily focused on the repayment of principal and interest on outstanding debts, but it does not directly reflect the gross utility debt in terms of capital financing for utility-specific projects.