Atlantic City by the Numbers
- $437 million in total debt.
- Structural budget deficit over $60 million
- Moody’s says bondholders could lose 35% of principal
- $1.8 million bond payment due in May
- $9.4 million bond payment due in November
- $7.1 million bond payment due in December
- $150 million owed to Borgata
Atlantic City; Just the facts, Ma’am
- City cut $25 mil from budget in 2015 & $25 mil for fiscal 2016.
- Staff right-sizing: reduction of 300 AC positions
- Some part-time positions in AC received full benefits
- AC Police Department downsized from 315 to 285
- Atlantic City spends $6,700 per citizen annually to run govt. (Newark spends $2,800)
- There are approximately 950 city employees
The Assembly speaker is blocking state takeover bill. Governor won’t help with a bridge loan until he signs the ‘Takeover’ & ‘PILOT’ bills already passed by the Senate. Assembly Speaker Prieto won’t put takeover bill up for vote, unless it protects union contracts.
Atlantic City Mayor, Council & unions may OK plan to switch bi-weekly employee paychecks…..to 1x per month.
- 119 city employees make over $100,000 per year, not inc health & pension benefits
- City paid $6.6 million in terminal leave to retiring employees (unused sick & vacation)
- “Lamborghini-level” health-benefits. “Wildly expensive, overly generous” says Guv
- Salaries of part-time council members = $300,000. (not inc health care & pension benefits)
“The speaker wants to protect all that,” Christie said. “He said it’s sacrosanct.” NJ Governor Christie (R) sees Speaker Prieto (D) and Mayor Guardian (R) as culprits in this stand-off.
Side Note: While each of the 6 wards in Atlantic City need proper representation, the ‘At-Large’ seats may be seen as non-critical, costly positions.
Marketing Atlantic City and the ACA
We used to fork over $30 mil a year to the Atlantic City Alliance. The ACA was created to develop marketing campaigns for the city. Much of that money went to expensive print & broadcast ads, even though most Newspaper and Broadcast outlets have experienced precipitous drops in readers and viewers/listeners. A big chunk of the $3o mil per year also went to ACA exec salaries.
Here’s a few reasons why the Atlantic City Alliance media plan didn’t work so well…. (click below to read)
Sky is Falling on Print Newspapers Faster Than You Think
Largest Radio Station Operator Trying to Grow in an Industry that isn’t.
Tribune Publishing Troubles may Reach Beyond Accounting
http://www.financial-market-news.com/russell-frank-co-lowers-position-in-townsquare-media-inc-tsq/1026466/
Atlantic County Executive Dennis Levenson and Assemblyman Chris Brown suggest that $10 mil per year is all that’s needed to market Atlantic City. Both mentioned this to gathered audiences in late 2015.
Today, $60 million (2 years worth) of ACA funding is sitting & waiting for passage of the pilot bill which would re-direct those dollars to reducing city debt. NJ state statute says they have to spend it. For all intents & purposes, there is no ACA today. This $60 mil could be spent on marketing or some other purpose, if the rescue package isn’t passed and enacted by May.
In 2011, a NJ state law was passed that created the Atlantic City Tourism District and the Atlantic City Alliance (ACA). It was funded mainly by casinos who collectively paid $30 million annually. The ACA is private, nonprofit marketing organization charged with promoting the resort.
What’s a PILOT bill?
In AC’s case…a PILOT bill would prohibit casinos from appealing their property taxes, they would make fixed annual payments instead. NOTE: an amendment was added in March 2016. It would allow casinos to opt out of the PILOT if gaming came to North Jersey. This amendment could render the PILOT as it currently stands, useless.