$65,000,000 Health Care Facility Lease Revenue Bonds, Series 2005; $22,960,000 Health Care Facility Lease Revenue Bonds, Series 2006
Preakness Healthcare Center (the “Center”) and the County of Passaic looked to the Authority to finance the expansion and renovation of the Center’s existing facility. The Authority issued $65,000,000 in Health Care Facility Lease Revenue Bonds, Series 2005 and $22,960,000 Health Care Facility Lease Revenue Bonds, Series 2006 in order to construct a new 259,736 square foot building with 340 additional beds, demolition of an existing building and landscaping around the new and old facility. The County, which owns the property, has entered into a lease agreement with the Authority under which the County will make rental payments pursuant to the lease in a sufficient amount to pay debt service on the outstanding bonds.
Paterson Parking Deck Project
$18,370,000 Parking Facility Bonds, Series 2005
Due to growth of the student population and project future growth of student enrollment the Passaic County Community College, the County determined a new parking garage was necessary to provide parking spaces for the College’s faculty, student body and visitors. The Authority in conjunction with the County and Paterson Parking Authority entered into a Memorandum Agreement to set forth the terms of the project. The Authority issued $18,370,000 in Parking Facility Bonds to finance the construction of approximately 960 parking spaces, 28,340 square feet of retail and office space and walkway to connect the parking facility with the college campus.
Prosecutor's Office Building Improvement Project
$6,000,000 Lease Revenue Bonds, Series 2005
Passaic County previously acquired certain land and an existing building located in Totowa, New Jersey. Renovations were needed on the existing facility in order for the County to consolidate various functions of the Office of the Prosecutor of the County into one facility. The Authority funded the project in order to undertake several renovations such as interior demolition, interior renovations, replacement of doors and windows, installation of wiring and fiber optic cables for technology, site work, landscaping and other improvements to the premise.
Haledon / Ringwood Pooled Loan
$8,587,000 County Guaranteed Loan Revenue Bonds, Series 2009
In early January, the Authority issued $8,587,000 in County-Guaranteed Loan Revenue Bonds to assist the Boroughs of Haledon and Ringwood in financing capital improvements. The Boroughs are the first municipalities to finance capital improvements through the Improvement Authority. By financing their short term obligations through the PCIA, the Boroughs were able to lock in low long-term interest rates and save dollars by sharing costs between both Boroughs.
Passaic County Pooled Recovery Zone Bonds - County, Little Falls & Wanaque
$10,292,000 County of Passaic Guaranteed Loan Program Bonds (Recovery Zone Projects), Series 2010 (Federally Taxable-Issuer Subsidy-Recovery Zone Economic Development Bonds)
In July 2010, the Passaic County Improvement Authority issued $10,292,000 in taxable Recovery Zone Economic Development bonds for the County of Passaic, Township of Little Falls and Borough of Wanaque. Authorized by the American Recovery and Reinvestment Act, the Recovery Zone Economic Development Bonds are taxable bonds that provide a 45% subsidy on the interest payment for municipalities to bond for public infrastructure improvements, site remediation or site acquisition to support economic development. The federal government allocated $10,292,000 to Passaic County for this purpose. The participants realized a gross savings of over $ 612,000 to local County taxpayers by utilizing the Recovery Zone Economic Development bonds which were further enhanced by a guarantee of the County of Passaic. The County's portion of the bond proceeds funded bridge repairs, road improvement and resurfacing projects throughout the County, while Little Falls used its portion to fund the construction of its Justice Complex and Wanaque funded the replacement of water main along Ringwood Avenue.
Yeshiva Ktana of Passaic - School Expansion Refunding
$21,931,500 Revenue Refunding (Yeshiva Ktana of Passaic Project), Series 2010
In August 2010, the Passaic County Improvement Authority issued $21,931,500 tax-exempt revenue refunding bonds for the Yeshiva Ktana of Passaic in order to consolidate previously issued taxable and tax-exempt notes, mortgages and loans. The Yeshiva Ktana of Passaic, a not-for-profit educational institution located in the City of Passaic, was able to achieve these savings by refinancing previous taxable debt as tax-exempt debt. The Yeshiva Ktana of Passaic opened its doors to fifty students in September 1987, and today enrollment numbers exceed two thousand students. The Yeshiva Ktana, with students at three different sites consisting of a preschool, school for boys and school for girls, is the largest private school in Northern New Jersey and second largest in the state. The refunding enabled the school to realize significantly reduced payments associated with the school’s cost of expansion. The payment of the bonds is supported by the revenue generated from the school’s tuition. The Yeshiva Ktana of Passaic realized an estimated present value savings of $ 3.4 million over 25 years by refinancing through the Authority. The non-profit refinancing was the first of its kind issued through the PCIA.
200 Hospital Plaza Project - St. Joseph's Parking Garage
$29,620,000 County Guaranteed Parking Revenue Bonds (200 Hospital Plaza Corporation Project), Series 2010
October 2010, the Passaic County Improvement Authority issued $29,620,000 in tax-exempt revenue bonds for 200 Hospital Plaza Corporation, a 501c3 and subsidiary of St. Joseph’s Hospital and Medical Center. Proceeds of the bonds were used to finance the design and construction of a mixed-use parking and retail structure adjacent to St. Joseph’s Hospital’s Paterson campus. The seven-level structure is essential to the $250 million expansion project undertaken by St. Joseph’s Healthcare System and will consist of approximately 1,120 parking spaces and 20,400 square feet of retail space. The bonds are supported by the revenues generated from parking at the Paterson campus; an obligation of St. Joseph’s Hospital and Medical Center to cure deficiencies in the Operating Reserve Fund below the Operating Reserve Requirement under a loan agreement between the hospital and the corporation; deposits in accounts created by the Trust Indenture; and the guarantee of Passaic County.
Passaic County Banc Program
The Passaic County Banc Program allows local government entities to take advantage of below market tax-exempt interest rate when financing equipment purchases. The Passaic County Banc Program offers participants many benefits, including, but not limited to, very attractive interest rates, flexible payment structures, quick turn-around, and 0% down payment. The application process is designed to be user-friendly requiring minimal paperwork. The process involves the completion of a one page application and official action of the local unit. The Authority continued to aggressively market this program through mailings, newsletter and meetings. In the programs first year, it funded $600,000 for Wayne Board of Education to purchase computers, maintenance vehicles, athletic equipment and school buses.
After receiving a Count Grant from the NJ Department of Community Affairs in late 2009, the Passaic County Board of Chosen Freeholders and the Passaic County Improvement Authority Commissioners undertook an aggressive initiative to educate the county's public service leadership to the significance of Shared Services programs. The results obtained from this County-wide Shared Services initiative are impressive. Three regional county-wide Shared Services educational seminars were conducted for municipal and educational leaders. These seminars demonstrated proven Shared Services programs conducted throughout the State of New Jersey any of which could be implemented within Passaic County.
The County DPW hosted its quarterly DPW meeting with municipal DPW Supervisors discussing various cost saving alternatives and receiving information on the newly established Municipal Assistance Agreement which streamlines government regulations and allows the County DPW to assist municipalities requiring additional equipment and personnel. A county-wide Shared Services Efficiency Survey was conducted requesting input from sixteen Municipalities and twenty-four School Districts. This survey identified and assessed the needs of participating public entities allowing for greater degrees of assistance within the Shared Services area. This information will continue to be a focal point to the County's Shared Services program and in the future, additional creative measures will be initiated in an effort to reduce the financial burden of the County's taxpaying public.
The survey led to Clifton and Little Falls shared a service, as Clifton became the lead agency for Little Fall's Health Department saving Little Falls taxpayers approximately 20% of their prior agreement and allowed their residents greater flexibility to meet Health Department needs. The Shared Service initiatives have created a clearer understanding that communication amongst individuals of differing municipalities and school districts will work offering quality service deliverables at reduced cost to the taxpaying public.