Atlantic City Sells Bonds, Investors Confident Debts Will Be PaidLast Edited:
On Friday, April 6th, the New Jersey Department of Community Affairs (DCA) announced that Atlantic City bonds have been sold to help finance the city's deferred pension and health-care contributions.
On Thursday, $49.2 million in federally taxable, deferred contribution refunding bonds sold rapidly and at a low interest cost for the city at just 4.2-percent. This demonstrates that investors are both confident in Atlantic City’s ability to pay its debt and in the State of New Jersey’s oversight of the city’s finances.
DCA officials say these deferred contributions from 2015 were the last major debt hurdle facing Atlantic City and with Thursday's successful bond sale, the city is now in a position to responsibly finance its debt within its budget.
They added that without the bond sale, Atlantic City would have had to raise property taxes this year on residents.
Last year, city residents received their first municipal property tax decrease in a decade.
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