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Atlantic City Council to set date for a Public Hearing on Loan Agreements & borrowing of money

News

February 16th, 2016 by Ric Hanson

The City Council in Atlantic will meet in a regular session Wednesday evening at City Hall. During the 5:30-p.m. meeting, the Council will review the proposed Fiscal Year 2017 Budget and 5-year Capital Improvement Plan. They’ll also act on passing a Resolution setting March 9th as the date for a Public Hearing on a proposal to enter into General Obligation Loan Agreements, and the borrowing of money for the agreements.

When it issued Bonds in 2011, the City reserved the right to call the portion of the 2011 Bonds maturing in years 2019 through 2026 for early redemption on any date on or after June 1st 2018. The Resolution (#4-16) proposes the City enter into a General Obligation (G.O) Loan Agreement (Or, “Essential Purpose Loan Agreement”) and to borrow money not to exceed $4.8-million, for the purpose of paying the costs to that extent, of:

  • Constructing street and storm water drainage improvements
  • Acquiring vehicles and equipment for the municipal fire and police departments
  • And advance refunding the Callable 2011 bond.

The City also proposes entering into a G.O. Loan Agreement and to borrow money in a principal amount not to exceed $200,000, for the purpose of paying the costs of constructing improvements to the municipal library. The maximum rate of interest payable for the Loan Agreement is seven-percent.

In the City’s proposed 5-year Capital Improvement Program, City Administrator John Lund reports the City has $10.276-million in proposed improvements. The resources available between incoming cash and renewing existing debts, without raising taxes, is $8.679-million, which leaves the City with a balance of approximately $1.59-million. Lund says the City is currently at 73.66-percent of its bonding capacity, with only two bonds falling off in the next five-years.