What is the purpose of a supplemental debt statement?

The purpose of a supplemental debt statement is fundamentally tied to legal requirements surrounding bond issuance. When a municipality in New Jersey intends to issue bonds, it is obligated to provide this document to ensure full transparency about its existing debts and financial obligations. The supplemental debt statement offers updated information that reflects any new debt incurred since the most recent debt statement, allowing for an accurate assessment of the municipality's financial situation.

This is critical for potential investors and the state, as it helps to evaluate the municipality’s capacity to repay the newly sought bonds in conjunction with its existing debt. In fulfilling legal bond requirements, the supplemental debt statement serves as a safeguard to maintain fiscal responsibility and protect the interests of bondholders, ensuring that municipalities do not overextend themselves financially.

The other options may relate to various aspects of financial reporting and management; however, they do not directly serve the same legal purpose that the supplemental debt statement fulfills in the context of bond issuance.