Atlantic City Council Approves $4.2 Million General Obligation Loan for Infrastructure and Public Safety Enhancements

(Atlantic) The Atlantic City Council approved a resolution to enter into a General Obligation Loan Agreement for $4.2 million in principal borrowing over 20 years. The total cost of the debt including interest is around $6.2 million.

The debt will be used for $100,000 for five years for police equipment and vehicles. Ambulance and Ambulance equipment for $500,000 for eight years, and $3.6 million for street improvements for over 20 years.

A more detailed breakout of the debt uses is as follows under the proposed Fiscal year 2026-2036 ten-year capital improvement plan:

*Police-LPR cameras, $100,000
*New Ambulance with all of the equipment-$500,000
Street projects include:
*2^nd Street (Poplar Street to Walnut Street)                                        $160,127.00
*5^th Street (Poplar Street to Walnut Street)                                         $170,802.00
*3^rd Street (Poplar Street to Walnut Street)                                         $173 150.00
*4^th Street (Poplar Street to Walnut Street)                                         $179,342.00
*6^th Street (Poplar Street to Walnut Street)                                         $228,447.00
*North Chestnut Street (State Street to Schildberg Parking Lot)    $416,300.00
*Chestnut Street (Depot Station to 7^th Street)                                     $887,208.00
*State Street (Locust Street to Chestnut Street) with additions       $1,203,480.00
*22^nd Street (7^th Street (HWY 6) to Palm Street                                 $1,207.042.00
——————-

Total: $5,225,897.000

Atlantic City Administrator John Lund notes the CIP has $20,000 per year for the LPR cameras. Still, to see specific use with the particular amount, it was front loaded into the table above. Lund says a $1,025,897.00 gap between the CIP funding needs and the city’s debt proceeds. The remainder will come from:

*$1,056,663.00 from the State Transportation Improvement Plan funds the city has accrued over the past ten years, and borrowed five years ahead. Lund says this money can only be used for the complete reconstruction of West 22^nd Street-(7^th Street to Palm Street).

*$349,625.00 in escrowed dollars from the local options sales tax (LOST) Capital Streets Fund and the Road Use Tax Fund.

*$15,790.00 in accrued interest in the Fiscal Year 2024-FY 2026 CIP Fund.

Lund says this should leave the city with additional funding should the bids on street projects come in higher than anticipated.

Lund says the annual payments on this debt will be made using a mixture of property tax dollars generated by the Debt Service Levy and LOST Capital Streets Fund dollars.