TOMS RIVER - The threat from Hermine is diminished but not completely gone despite sunny skies.

The Tropical Storm Warning has been pulled back to just the coastal waters and a Coastal Flood Warning is in place as Hermine stays out to sea.

"New Jersey will feel the 'wrath' of Post-Tropical Cyclone Hermine on this Labor Day Monday. But even as the storm’s center makes its closest pass to the Jersey Shore – about 200 miles away – those impacts won’t be nearly as severe and devastating as once thought," Meteorologist Dan Zarrow said.

Zarrow said the wind will kick up on Monday to 15-25 mph with the gustiest winds along the shore.

Swimming in the ocean is still off-limits as the risk of dangerous rip currents continues with 14-foot seas and winds gusting to 25 knots. Gov. Chirs Christie said that Island Beach State Park will be open, however.

"Park visitors must still be mindful that rip currents and rough surf may still require that no one be able to go swimming, but if we are going to have a sunny day, people should be able to enjoy walking or sitting on the beach," Christie said.

Ocean County Office of Emergency Management Director Paul Daley said "We're happy we didn't it as bad as expected but we're not out of the woods yet. We still have Monday and Tuesday night's high tide to worry about."

Belmar Mayor Matt Doherty had no regrets about his borough's preparations for Hermine.

"After Sandy we have to look closely at whatever the forecast may present. We don't have the luxuary of a wait-and-see attitude. We have to be very aggressive in our preparation," Doherty said, which included building sand berms on the beach and lowering the lakes. "We got lucky."

Atlantic County spokeswoman Linda Gilmore advised not to drive through high-standing water.

Atlantic City Electric spokesman Fred Tedesco said the company's preparations remain the same with resources from its sister utilities still available to assist with restoration.

Vin Ebenau contributed to this report.