Re: Jersey City has big plans for 100 acres on West Side along Hackensack River
Posted by T-Bird on 2018/10/11 10:41:36
The city debt increased this year to an additional $170 million, plus $45 million bonded several months ago, $14.5 million for terminal leave. If you add an additional $100 million for tax refunds. That is an additional $329.5 million for 2018. The gross debt is already $650 million, bringing the debt well over $900 million. Then there is the loss of $170 million from the state for the schools. Forget about being the best midsize city in America, we will be the next Detroit who went bankrupt.
And yet, the bond rating agencies continue to upgrade Jersey City - Moody's having done so twice in the last four years. The current rating of Aa3 indicates a negligible chance of default.
This debt will be repaid when the city sells the land. Could they end up selling it for less than they are paying? Possible, but the amount at risk is a very small fraction of what is being borrowed and not the likely outcome.
Yes - numbers can be big and scary (and for some, confusing!) - especially when taken out of context.
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