City Approves $11.6 Million Debt Restructuring
Monday, January 28, 2013 • 12:16pm
PATERSON, NJ - The city will incur almost $3 million in extra interest payments under a $11.6 million debt restructuring plan approved by the City Council last week.
The restructuring allows the city to avoid making an $8.9 million debt payment due this fiscal year, which officials say would have increased the current budget deficit that now stands at about $8.5 million.
The restructuring delays the bulk of the debt payments until 2020, when $4.3 million will be due and 2021 when $7 million will be due,
Council members said they were not happy with the restructuring, but they also said the state was requiring them to proceed on the deal.
"I'm supporting this because I believe there's no way out,'' said Councilman Rigo Rodriguez.
"No financial person worth anything would recommend this particular strategy,'' said Council Finance Chairman Kenneth Morris. "But unfortunately the state has mandated we follow this strategy.''