City borrows $15 million to cover ongoing Sandy repairs

The city council approved a $15 million revenue anticipation note last week to cover ongoing costs associated with Hurricane Sandy.

Christina Daly/Herald

The City Council approved a $15 million borrowing measure at last week’s meeting to cover the costs of ongoing rebuilding projects more than three years after Hurricane Sandy.

The council voted unanimously to approve a short-term revenue anticipation note, which officials said would be used for a number of projects that are to be reimbursed by the Federal Emergency Management Agency.

City Manager Jack Schnirman said the funds are expected to be “100 percent” reimbursed and provides additional cash flow for ongoing recovery efforts such as the repair of parks and playgrounds, installing new sand filters at the Water Treatment Plant, and dune grass replacement, among other projects.

“Any monies borrowed in association with this are to be repaid within three years — federal and state funding is expected to be fully used to redeem this revenue anticipation note, and this revenue anticipation note does not add to our long-term debt,” Schnirman said.

The city has earmarked $10.4 million for rebuilding projects, but said that it requested $15 million “to have a little bit of cushion” to fund other projects FEMA may approve. The annual interest on the note — $150,000 in the first year — is not reimbursable, officials said.

Sandy caused more than $100 million in damage when it hit and to date, of the $110 million Long Beach has spent on recovery work, the city has received $88 million in reimbursements for everything from rebuilding the dune walkovers and boardwalk to debris removal and numerous building repairs.

Jim LaCarrubba, the commissioner of Public Works, said that the city has been conducting the work in accordance with the Stafford Act, the federal law that helps states and localities implement long-term mitigation measures after major disasters.

“We’ve been very diligent and we really made sure we do our level best to make sure we have no issues with [project worksheets] we’re submitting,” he said. “FEMA won’t give you anything until they see you paid for it.”