TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS (continued): FOR THE YEAR ENDED DECEMBER 31, 2013

Note 10. Short-Term Debt (continued):

Special Emergency Note Payable

The Township is indebted to itself through excess cash available in the General Capital Fund as of December 31, 2013 and is classified as an asset “Investment in Special Emergency Notes”. The note is issued in anticipation of the collection of taxes and revenues, including proceeds from FEMA and insurance proceeds, of the Township of the budget years 2013 through 2017 (20% of the original appropriation to be paid in each year) to finance special emergency appropriations to meet certain expenses incurred as a result of the extraordinary damage to the streets, roads, and other public property caused by Hurricane Sandy, authorized by Township resolution.

Note 11. Bonds and Notes Authorized But Not Issued

At December 31, 2013 the Township has authorized but not issued bonds and notes as follows:

General Capital Fund - Bonds and Notes $1,891,241

Note 12. Deferred Charges to be Raised in Succeeding Budgets

Certain expenditures are required to be deferred to budgets of succeeding years. At December 31, 2013, the following deferred charges are shown on the balance sheets of the various funds:

45