Case Study

Atlantic County Utilities Authority, NJ

PFM has served as ACUA's financial advisor since 1994. The initial engagement involved a full range of financial planning and transaction services to negotiate the sale of new money and refunding bonds. PFM has also reviewed proposals to privatize the treatment system, and structuring a short and long-term borrowing program through the New Jersey Wastewater Treatment Trust.

In October 2003, the professionals with PFM's Moorestown Office provided the Authority with financial advice in connection with a current refunding of its Sewer Revenue Bonds, Series 1994A and 1994B (collectively, the "1994 Bonds"). The refunding produced over $800 thousand in gross debt service savings. On a present value basis, the savings were approximately $730 thousand, or 7.105% of the par amount of refunded bonds.

PFM has continued to provide consulting services to the Atlantic County Utilities Authority as it develops contingency plans to compete in a deregulated environment. Specifically, PFM has helped the Authority prepare presentations to the rating agencies addressing their concerns about the New Jersey solid waste system in light of the Carbone decision. We have helped ACUA develop a contingency plan to reduce expenses and diversify revenue sources. PFM has helped ACUA evaluate its participation in the Mercer County Resource Recovery Project, including an evaluation of its financial obligations and providing advice on the economic risks from the proposed service agreement. Finally, PFM has also conducted analysis and financial modeling of various disposal options, fee structures and the funding of capital improvements.