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AHH 24-Hr. News

IMAGE Enjoy a Relaxing August in Monmouth County
Saturday, 19 July 2014
PHOTO: Keyport Spanish American Festival is August 9 at Beach Park. (facebook image) The best of summer is on its way FREEHOLD, NJ – Warm... Read More...
Help Your Community Exercise Their Right to Vote
Saturday, 19 July 2014
Become a Monmouth County election poll worker FREEHOLD, NJ – The Monmouth County Board of Elections is seeking poll workers for upcoming elections.... Read More...
National Park Tourism in New Jersey Creates $159.5 Million in Economic Benefit
Saturday, 19 July 2014
New report shows visitor spending supports 2,328 jobs in New Jersey PHILADELPHIA, PA – A new National Park Service (NPS) report shows that... Read More...
IMAGE COA: Obama Administration’s Final Decision Declares Open Season on the Atlantic by Big Oil
Saturday, 19 July 2014
Coalition Responds to Administration’s Hypocritical Ocean Policy--- Adds Insult to Injury off Jersey Shore SANDY HOOK, NJ - Today, the Bureau of... Read More...
AAA Mid-Atlantic: Pump Prices in a Mid-Summer Slide
Saturday, 19 July 2014
The Week As predicted by AAA, the retail price at the pump continued to tick lower following the Independence Day holiday due primarily to lower... Read More...

Columns

IMAGE Review - Tammy
by David Prown
Sunday, 20 July 2014
It's amazing to me how lame the movie selection was this week. I'm not even sure if there was anything new out...amazing. Have you noticed how I'm... Read More...
IMAGE The Importance of the Small Things, such as Commas
by George Hancock-Stefan
Sunday, 20 July 2014
I came back from a two week trip through Romania and Turkey.  It was a great trip visiting old and new churches and monasteries, and meeting in... Read More...
IMAGE Traumatic Brain Injury Was Devastating
by Daniel J. Vance
Saturday, 19 July 2014
Four days after getting his driver's license at age 16 in 1975, Todd Bode was coaxed into joining his big brother on a road trip. The hook was that... Read More...
IMAGE Skewed View - July 18, 2014
by Tom Brennan
Friday, 18 July 2014
Edward Snowden says Dropbox is "hostile to privacy". That and Condoleezza Rice has been on their board since April: http://bit.ly/1rmen1c Why... Read More...
IMAGE How Many Divisions does the Court Have?
by Woody Zimmerman
Friday, 18 July 2014
“How many divisions does the Pope have?” This was Josef Stalin’s famous rhetorical question to an advisor concerned about the Pope’s... Read More...

Upcoming Events

Tue Jul 22 @ 8:00AM -
Golf Outing - Marlboro
Tue Jul 22 @ 3:00PM - 04:30PM
Free Summer Mini-Camp
Wed Jul 23 @ 9:30AM - 10:50AM
Story Time
Wed Jul 23 @ 3:00PM - 04:30PM
Free Summer Mini-Camp
Thu Jul 24 @ 9:00AM - 11:00AM
Middletown Mayor Open Office Hours

jack_archibald_120The rebuilding of the Atlantic Highlands harbor is one of the largest public works projects in Atlantic Highlands history.  On a financial scale, only the rebuild after the Nor’easter of 1992 and the building of borough hall can compare.  Not only is the scale of the project enormous, but the boating season deadline adds to the challenge.

Those loyal readers of this column have been well versed in the timeline and scope of the project.  Finally, the means to fund the clean up and rebuild have come into greater focus. With a price tag of in the neighborhood of twenty million dollars including the cleanup, the financing is a not insignificant factor throughout the story.

This past Wednesday, the borough of Atlantic Highlands sold Bond Anticipation Notes in the amount of $8 million as the first leg of the project.  (The amount of BANS earmarked for the Harbor was $7 million with the additional $1 million BAN a rollover of sewer BANS)  Due to state requirements regarding timing, the borough could not sell an additional $9.7 million BANS for the project, but the interest rate that the borough received for our notes was the best possible scenario.  Unlike bonds, a Bond Anticipation Note is a one year maturity that can be rolled over for several years until a decision is made regarding permanent financing – either pay off the BANS or sell long term bonds.

Atlantic Highlands received an interest rate of 0.75% from Wells Fargo Bank.  Similar issues in the market had come at higher interest rates, and by all accounts, Wells Fargo stepped up to the plate with their rate.  The key issue for most investors, is how secure is the source of repayment for the notes.  Due to the amazing effort of our borough and harbor professional staff, the project work sheet submitted to FEMA is close to $20 million dollars.  We have received verbal assurances from FEMA officials that our project will be funded at 75%, if not 90%- and that will account for the majority of the repayment. 

Additionally, the borough has a business interruption policy for the Harbor as well. In a great piece of foresight attributable to former Mayor Mike Harmon, the borough has had this policy in place since the Nor’easter of 1992.  Until Sandy, the borough has never had to utilize this policy, and it will also be used to repay the Bond Anticipation Notes.  It is safe to say that most municipalities do not carry this type of insurance, and Atlantic Highlands is fortunate to have funded this policy over the years.

Finally, the Mayor and Council always have the ability to raise the rates on the leases in the Harbor.  While that is not currently contemplated, bond investors like to see an additional means of covering debt service, and this certainly gave investors further comfort when bidding our notes.   Next month, the borough will sell our second and final leg of notes for the Harbor.  If Wednesday’s sale can be replicated, the initial financing of the harbor rebuild will be considered a success.