UPDATE: Borrowing to Balance the City Budget - While the City considers selling the Triangle for just $400,000, the city manager floats a $21,500,000. bond issue to pay the bills for a couple of years. And over half a million of that loan will go to Asbury Partners to help them de-stink the sewer plant. Something sure stinks in Asbury - and it ain't just the sewer plant. Ques: how much interest are we charging the Partners on that $540,000? What are we holding as collateral? City Manager Reidy was well known for his bonding habits in Montclair.
UPDATE on Sewer Plant Bonding Ordinance - Read the official documents Asbury Park presented to the Local Finance Board of the Dept. of Community Affairs in order to get State approval to borrow $21.5 million.
$540,000 of Asbury's $21.5M bond is for odor control & improvements to sewer plant. Asbury Partners (referred to only as the "redeveloper") will repay the city over 10 years, loan to be secured by a letter of credit. It owes the city - not the bondholders. The City owes the bondholders for the sewer upgrade.
What's wrong with this language? Does it say we're using all $21.5 million to balance the operating budget? See 8/12/05 AsburyParkPress pg 1 story on judge's ruling on bonding to balance gov't budgets - & 8/4/05 APP Editorial - "No End to Fiscal Gimmicks" - It's against the NJ Constitution for the state to balance its budget with bonded funds. The ordinance was passed by the council anyway. Note: Asbury Partners is responsible for improvements to the sewer plant, especially odor remediation. On left, 2nd Col. clearly states one of reasons for $21.5 M sewer bond issue is "providing odor and noise control improvements at the wastewater treatment plant."