2012-05-24 1 |
Previous | 1 of 28 | Next |
|
small (250x250 max)
medium (500x500 max)
large ( > 500x500)
Full Resolution
All (PDF)
|
This page
All
Subset |
3*9*******CR LOT0032A**C029
FRPT MEMORIAL LIB
144 W MERRICK RD
Who will be EREEPORT NY 11520-3726
Father of the Year?
H'TpJfJt
, Jiito?
NIFA: No to Morgan Stanley contract
by Laura Schofer
The Nassau Interim Finance Authority
(NIFA) rejected Nassau County's plan to
hire Morgan Stanley to broker a deal for a
private-public partnership for the county's
sewage treatment system.
Last week at a Board of Directors meet-ing,
NIFA voted 5-0 against the proposal to
pay $5 million to Morgan Stanley to assist
in finding a private investor to fund a
$750+ million deal regarding privatizing
sewage treatment plants. A sixth board
member, Robert Wild, abstained from the
vote.
NIFA is charged with controlling the
county's finances and is empowered to
issue bonds and notes for various county
purposes, including the restructuring of a
portion of the county's outstanding debt. In
addition, the authority has certain powers
to monitor and oversee the county's
finances.
"The proposed plan reduces Nassau's
debt by 25%," said County Executive
Edward Mangano. The deal would pay off
$465 million owed to the county's sewer
authority as well as an additional $400
million in other debts.
NIFA board meeting notes indicate that
board members are skeptical regarding the
county's plan for a public-private partner-ship.
The county has indicated it would
choose United Water, a subsidiary of a
French corporation Suez Environment, to
initially operate and maintain the Cedar
Creek Water Pollution Control Plant and
the -Bay Park Sewage Treatment Plant.
Severn Trent will operate the Glen Cove
plant until its lease is up in eight years.
United Water will also operate and
maintain 53 pumping stations and 3,000
miles of sewers for 20 years with a 10-
year renewal option.'The plan calls for no
increase in sewer rates through 2015, and
then a cap at the rate of inflation for the
remainder of United's contract with the
county.
"I have never come across such an
ill-conceived plan. It is an example of
bad public finance and if implemented
will give private-public partnerships a
bad name," said NIFA director George
Marlin in a prepared statement. Mr.
Martin is former executive director of the
Port Authority of New York and New
Jersey.
"The NIFA board is clearly confused
about the potential of a public-private part-nership
for Nassau's sewage treatment
plants - which are in a state of disrepair
and face fiscal crisis," stated County
Executive Mangano.
But Mr. Marlin added that "This is a
form of back-door borrowing. Potential
financial investors who invest money to
public-private partnerships expect annual
returns of 10 to 15%. To suggest that a
private operation will achieve enough
efficiencies to cover most of that cost and
that assessment or user fees will increase
no more than the rate of inflation - well,
anyone who believes that, I have a colise-um
in Hempstead I would like to sell to
them."
"The county should focus on balancing
the budget and not on creating and execut-ing
a transaction, which creates the illu-sion
of balance while putting the county
and its taxpayers in extreme financial
risk," added another NIFA director,
Christopher Wright.
(continued on page 10)
&seple's names were in; arsis in this week! Sec inside.
Parking wars
L Street
ifor fights
ire
Object Description
| Rating | |
| Title | 2012-05-24 |
| Subject | Newspaper |
| Description | This is a Newspaper distributed locally within the Village of Freeport and Baldwin. |
| Creator | Linda Toscano |
| Publisher | L & M Publications, Inc. |
| Contributors | Scanned by Imaging & Microfilm Access, Inc. (Bohemia, NY 11716) |
| Date | 2012 |
| Type | Periodical |
| Format | |
| Source | Freeport Memorial Library |
| Language | English |
| Coverage | United States |
| Rights | This digital image may be freely used for educational uses, as long as it is not altered in any way. No commercial reproduction or distribution of this image is permitted without written permission of the Freeport Memorial Library, 144 W. Merrick Road, Freeport, NY 11520 or email: frreference@freeportlibrary.info |
Description
Tags
Comments
Post a Comment for 2012-05-24 1
