Dear Editor:
This letter concerns the article written by John A. Martins titled, “Off the hook; Officials announce city’s removal from state aid program.” The article quotes former Mayor Schundler who said, “Cunningham has been spending more rapidly, and debt has gone through the roof, both city debt and agency debt.”
Schundler continues to criticize Cunningham by predicting that water rates and property will rise through the use of the MUA.
Now let’s check the facts of the Schundler administration. In 1995, the Total Gross Debt was $632 million, but four short years later, l999, that debt ballooned to $740 million. Mayor Schundler balanced the city’s budget through bonding debt, and let us not forget that no budget was ever introduced on time. All budgets were passed after the money was spent.
Mayor Schundler contracted our water to United Water and the MUA. He promised that if we allow United Water to run our water system then we would realize millions in revenue. That did not happen.
The water system has been a bonanza for United Water. When our contract expired with Hoboken and was up for renewal, United Water considered the Hoboken contract to be a new contract. The terms negotiated with United Water and Jersey City allowed United Water to make a 25 percent profit for new contracts. And let’s not forget the deal that was negotiated with the MUA. Our water sales have been growing because of new construction in Jersey City, however the deal that was struck with the MUA gave small homeowners a rate increase of 8 percent in 2000 while large meters (large users) received a rate increase of 0.5 percent.
So I find the statement, Schundler’s statement, “A lot of the lowest-income residents have trusted (Cunningham) and he should honor that trust…otherwise folks are going to lose their home” to be amusing.
Yvonne Balcer