Wednesday, September 13, 2017

Suez, to be or not to be a contingent liability

MILE SQUARE VIEW EXCLUSIVE

Should it be listed or should it not? When is an anonymous blogger a credible "source" while the slings and arrows of City Hall remain silent?

That is one question among others connected to NJ state and municipal reporting requirements unanswered by the powers that be at City Hall.

While numerous commenters have been arguing this and other matters, there's been no official statement to these and other important questions surrounding the revelation Hoboken sits on a $8.35 million obligation owed to Suez, the water vendor to the City. It's been accumulating since 2014.

The breakdown of how it began connected to contractual elements of amendments years past is less important than how the growing debt was managed or rather, hidden.

MSV has exclusively obtained from non-governmental sources the CITY OF HOBOKEN, COUNTY OF HUDSON, NEW JERSEY GENERAL OBLIGATION BONDS, SERIES 2017

In no small irony, the official document states:
No dealer, broker, salesman or other person has been authorized to give any information or to make any representations other than as contained in this Official Statement. If given or made, such other information or representations must not be relied upon as having been authorized by the City or any underwriter. 

MSV has certainly seen its share of "other" persons unauthorized to give any information on this "official" statement. 


Why have we not seen an "official statement?" 


That's right, from City Hall. 


It's been a full week since the Hoboken City Council did not vote on the proposed contract extension offered by the Zimmer Administration. There's not been a single word of protest by any member of that nine member body. Not a single member of the legislative body after the August and September presentations by professionals inside and outside of the Administration wanted to sponsor and move forward.


That should give some pause. It's seen others offer a finality to an assessment direly incomplete. They'll understand why soon enough. The politics being played here is not borne of the City Council. It's an old time Soprano State play to cover up a problem for reasons at the moment uncertain.


Hoboken, there's a problem. 


See the document here and ask yourself is Suez a contingent liability or not? If it is, why is it not listed here? If not here, where is the liability reported by the City of Hoboken?


See B-67, Commitments and Contingent Liabilities