Which type of debt statement is due upon the introduction of a bond ordinance?

The correct answer is a Supplemental Debt Statement. This type of debt statement is required when a municipality introduces a new bond ordinance. A Supplemental Debt Statement provides an updated account of the municipality’s existing debt obligations and is necessary to ensure compliance with statutory limits on total debt.

When a bond ordinance is introduced, it impacts the municipality's overall debt level, and the Supplemental Debt Statement assesses the potential effects of this new debt on the municipality’s financial standing. This document must reflect the changes in debt and outline the ability of the municipality to repay the additional bonds being issued.

In the context of municipal finance, the introduction of a bond ordinance signifies that the governing body is considering borrowing money for a specific purpose, which necessitates a careful reassessment of the municipality’s existing financial commitments. The Supplemental Debt Statement ensures that this assessment is transparent and that the municipality remains compliant with New Jersey statutory requirements regarding indebtedness.

Understanding the timing and purpose of the Supplemental Debt Statement is crucial for municipal finance officers, as it supports responsible fiscal management and decision-making processes within local government.