Atlantic City’s Mayor warned that the city could run out of money by the end of April unless is receives aid outlines in a series of bills dubbed the Atlantic City Rescue Plan.
“Cash flow runs out April 29,” Guardian told reporters during the New Jersey State League of Municipalities conference held in the city and reported by Bloomberg News.
The legislation in questions would set a fixed Payment in Lieu of Taxes program for city casinos for 15 years, but also diverts casino redevelopment and marketing funds to the city. Christie conditionally vetoed the bills meaning he wants changes made by the legislature.
Christie wants to withhold about $30 million in aid from the city for two years unless it adopts a state approved fiscal plan.
Lawmakers must approve the changes by January 12, or the bills will have to be re-introduced.
If the city runs out of cash, it won’t be able to borrow, Guardian said. Moody’s Investors Service grades the city’s debt Caa1, seven steps below investment grade. Standard & Poor’s ranks it, five levels into so-called junk, according to Bloomberg.
“It would be foolish to bond at the rates we would have to,” he said. “If we could find anyone to take our bonds.”