Atlantic City will deliver a $1.8 million dollar bond payment today. Just the thought of the City defaulting has caused a statewide gasp.
The bond payment comes just days before a likely posting of a ‘Take-over / Bail-out / PILOT’ bill by house speaker; Vincent Prieto. This so-called ‘Sweeney Bill’ is far reaching in it’s ability to take even greater control of most financial decisions made by the Mayor and City Council of Atlantic City. Of greatest concern: the bill’s power to break union contracts.
The city was considering skipping the payment as it preps to make a $7 million payroll payment on May 6.
If the Atlantic City Mayor decided NOT to pay bondholders today, that would be historic. It would be the first time since the Great Depression a NJ town defaulted.
Atlantic City has $550 million in debt, and a budget deficit of $100 million.
With Atlantic City bankruptcy looming, it been noted that Senate President Sweeney has shown some flexibility in a potential Atlantic City deal.