TOWNSHIP OF JACKSON
NOTES TO FINANCIAL STATEMENTS (continued):
FOR THE YEAR ENDED DECEMBER 31, 2012
Bond Anticipation Notes
The Township issues Bond Anticipation Notes to temporarily fund various capital projects prior to the issuing of serial bonds. The term of the notes cannot exceed one year but the notes may be renewed from time to time for a period not exceeding one year. All such notes must be paid not later than the tenth anniversary of the date of the original note.
On December 31, 2012 the Township had the following Bond Anticipation Notes outstanding:
| Balance December 31, 2011 | Issued | Retired | Balance December 31, 2012 |
|---|
| General Capital Fund: | | | | |
|---|
| Bond Anticipation Notes | $ - | $5,485,337 | $ - | $5,485,337 |
|---|
| Total | $ - | $5,485,337 | $ - | $5,485,337 |
|---|
The notes are dated August 8, 2012 and bear an interest rate of 1.25% with a maturity date of one year from date of issue. The purpose of the Bond Anticipation Notes are to fund the acquisition, construction, repair and installation of various capital improvements authorized by the Township.
| Balance December 31, 2011 | Issued | Retired | Balance December 31, 2012 |
|---|
| Current Fund: | | | | |
|---|
| Special Emergency Note | $ - | $1,905,000 | $ - | $1,905,000 |
|---|
| Total | $ - | $1,905,000 | $ - | $1,905,000 |
|---|
The Township is indebted to itself through excess cash available in the General Capital Fund as of December 31, 2012 and is classified as an asset “Investment in Bond Anticipation 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.
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