Atlantic City makes $1.8M bond payment

Atlantic City mayor due to announce decision on bond payment

Atlantic City mayor due to announce decision on bond payment (5/2/16)

ATLANTIC CITY - Atlantic City's mayor says the cash-strapped city has made a $1.8 million bond payment.

Republican Mayor Don Guardian said the city made the payment at 10 a.m. Monday after considering the effects on cities around the state and Atlantic City if it didn't pay up.

But Guardian says the city is "running on fumes" as state leaders continue to argue over plans to help the struggling city avoid bankruptcy.

"I wanted to make sure I didn't put the bonds before payroll, over schools, before anyone else and after doing a careful review we made the decision to pay the bonds,” Guardian says. “We think it was a viable solution. We think it was the right decision."

Guardian says that he faulted Gov. Chris Christie for refusing a state bailout. The mayor says that he wanted to avoid following in Fort Lee's footsteps in the 1930s when it failed to pay debt leading to bankruptcy.

"It would have a very negative effect on Atlantic City, our current cash flow, certainly all the municipalities near Atlantic City and even the county of Atlantic,” says Guardian.

Guardian pushed for an Assembly bill that would give Atlantic City two years on its own before a state takeover.  Gov. Christie and some state senators want a state takeover immediately, something the mayor says the ACLU may help fight.

The New Jersey Senate has already passed a takeover plan supported by Gov. Christie and Democratic Senate President Steve Sweeney, but Democratic Assembly Speaker Vincent Prieto has refused to put it up for a vote in that chamber, partly because it would allow the state to break union contracts.

Atlantic City’s next debt payment is due in June. Mayor Guardian says he can't say for sure if it will be paid.

The Associated Press wire services contributed to this report.

advertisement | advertise on News 12

Trending Video

One person was killed in a shooting on 1 At least 1 dead in Thursday night Newark shooting
Genesis Rincon was shot and killed by a 2 Man pleads guilty for death of 12-year-old girl
Kane In Your Corner continues its investigation into 3 KIYC: NJSPCA no-bid contracts questioned
VIDEO: Interview with former Suffolk County Executive Steve 4 VIDEO: Interview with former Suffolk County Executive Steve Levy
News 12 speaks with residents about what they 5 Hudson Valley Talks Trump: Tax plan

advertisement | advertise on News 12

More News

Gov. Christie pushes for an Atlantic City deal. Christie says he’s willing to let Atlantic City go broke

Gov. Chris Christie says that he’s getting increasingly fed up with the standoff between himself

Report: Leaders discussed ouster of New Jersey Assembly Report: Leaders discussed ouster of NJ Assembly speaker

A New Jersey Democratic party official says leaders have discussed the possibility of ousting the

Atlantic City won't consider a 20 percent pay Atlantic City won't consider 20 percent pay cut proposal

A proposal by an Atlantic City councilman for a 20 percent pay cut on elected

Casinos call for vote on Atlantic City aid, Casinos call for vote on Atlantic City aid, takeover bills

Atlantic City's casinos, saying they are "on the edge of the abyss," want an immediate

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE