Politics & Government
National Debt Ceiling Debate Stalls Freeholders
Uncertainty delays county bond projects
Shaken by the Congressional impasse over the nation’s debt ceiling and deficit, Ocean County’s freeholders' plans to sell up to $61 million in bonds next month are on hold.
Freeholder John C. Bartlett Jr. said the uncertainty caused by the split between Republicans and Democrats over how to raise the debt limit and cut the deficit could translate into higher interest rates next month.
The freeholders recently approved a plan to refinance up to $35 million in existing debt to cash in on lower interest rates, a move expected to save about $1 million in interest charges.
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To pay for capital projects now under way, or about to start, the county officials planned to float another $26 million in bonds.
“The market’s in turmoil… too unsettled,’’ Bartlett said of the planned August bond sale. We’re on hold until we see what’s what.’’
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That decision was based on advice from the county’s financial adviser, he explained.
The county’s capital projects, road, bridge, and other projects will not be delayed, he said, because they will be paid for with the county’s surplus.
He expressed confidence that impasse will end, but said no decision will be made on the county bond sales until “comfort’’ returns to the bond market.