Rule Rutgers' 2026 Municipal Capital & Trust Fund Exam – Invest in Your Success!

In the Annual Debt Statement, the net debt burden is expressed as a percentage of the average equalized valuations for the three preceding fiscal years. This approach smooths out year-to-year swings in property values and uses equalized valuations because they provide a standardized measure of the tax base across municipalities. Using the three-year average helps prevent a single abnormal year from distorting the debt burden ratio. Using current-year valuations or totals like gross debt would not give the stable, comparable denominator this ratio relies on, which is why the three-year average of equalized valuations is the correct basis.