NJ Urges Investing In Shore Towns
By Phil Gregory, WBGO News
Trenton. January 16, 2013
The state is urging Wall Street firms to invest in local government bonds for rebuilding along the Jersey Shore.
Many coastal towns have lost a significant portion of their tax base because of the damage from Hurricane Sandy.
The New Jersey Department of Community Affairs says most of the losses are temporary, and those shore towns are still a sound investment option because the state has the authority to ensure the borrowing for the bonds is repaid.
Bill Dressel with the New Jersey League of Municipalities says the state’s proactive statement should give investors the assurances they need.
“They want to make sure that there’s going to be enough collateral to be able to pay off those bonds. I think that was the state is doing here is making sure that if there is any nervousness that it should be for naught.”
Dressel says revenue in shore towns will pick up again as they rebuild.
“They will become economically viable, and it does not make sense to lower their bond ratings. They are clearly going to be able to meet their obligations, and the state is doing all they can to make sure that’s going to happen.”