Edison Township Council finance staff on Monday told council members the township is well under New Jersey’s statutory debt limit and that users of specific utilities will pay costs tied to those systems.

The council discussed several bond ordinances and asked how the issuances will affect the municipality’s debt ratio. “If we look at our annual debt statement from the 2024, our net debt as a percentage of equalized valuation was 0.891%,” a finance staff member said. He added the state limit is 3.5% of equalized valuation and that, based on outstanding obligations, Edison had about $180,000,000 in debt at the end of 2024 and could theoretically issue more debt and remain within the statutory cap.

Why it matters: Council members pressed staff on affordability and the relationship between new borrowing and annual debt service. Finance staff said the administration tries to manage debt so that total annual debt service remains “under $12,000,000 a year,” a level the town has maintained in recent years.

Officials also clarified how utility-related borrowing is paid. Legal/finance staff confirmed purchases for the garbage district are paid out of the garbage district (by district taxpayers or users) and purchases for the water utility are paid from the water utility (by water-rate payers). “Those are both... self-liquidating utilities, which means the costs are paid for by the users,” a staff member said.

Councilors asked for specific effects of the pending bond package. Finance staff provided a projected post-bond equalized debt ratio of 2.985%, noting the increase would still be under the 3.5% statutory limit. A council member also asked about current rental expenses for two trucks used by the water department; staff said they would provide a rental-cost breakdown separately and noted a separate resolution to purchase trucks for about $329,000.

The work-session discussion did not produce a final vote on issuance at that meeting; council members moved between agenda items and asked staff for follow-up numbers and clarifications.

Council members said they will review the detailed debt statement, expected bond ordinances and utility-specific cost allocations at upcoming meetings.