Corporation Of Hamilton Financial Statements

July 1, 2017

The Corporation of Hamilton announced that the 2016 Financial Statements have been posted on its website.

The City said, “Included in the statements of operations is the derecognition of the liability on the Mexican Infrastructure Finance [“MIF’] Guarantee of $18,752,548 which has resulted in revenue exceeding expenditures by $19,671,211 for the year ended December 31, 2016.

“On May 12, 2017, the Court of Appeal upheld the November 2016 Supreme Court ruling that the Corporation had no power to guarantee the loan MIF made to Par-la-Ville Hotel and Residences Ltd [“PHRL’] to build a hotel on the Par-la-Ville car park. The court ruled that in providing the guarantee the Corporation acted ultra vires.

“Therefore, the guarantee cannot be enforced against the Corporation and the Corporation is not liable for the guaranteed sum of $18 million. The Corporation has, therefore, derecognised the liability related to the guarantee of $18 million together with previously accrued interest of $752,548.

“In June 2017 MIF served notice of its application for leave to appeal to the Privy Council against the Court of Appeal’s ultra vires judgment. The Corporation intends to resist the appeal.

Total revenues from 2015 to 2016 have increased by $55k. Revenues from Goods Wharfage and Dock Charges increased by $267k and $188k respectively. Unfortunately, the increased revenue was negatively impacted by Car Parking fees which were down $479k from $3.3 million in 2015 to $2.8 million in 2016.

Total expenses are down by $333k from $21.5 million in 2015 to $21.2 million in 2016 due to interest and finance charges which were lower by $774k as a result of the reversal of accrued interest on the guarantee.

“Street operations & maintenance also decreased by $476k due to a decrease in street resurfacing in 2016. Several other expense items were down when compared to the prior year as a result of the Corporation’s efforts to control costs. The savings in spending were slightly offset by an increase in administrative and general expenses of $1 million due to increased legal fees in the current year related to the MIF case and liquidator’s fees related to the liquidation of PHRL.”

“The Corporation is pleased with the outcome of the judgment and that the Corporation was able to derecognize the liability of $18 million from our books,” said Mayor Charles Gosling.

“We are pleased that the Financial Statements have again been delivered to the Minister responsible for Municipalities prior to the 30th of June deadline in accordance with the requirements in Section 41 of the Municipalities Act.”

Visit www.cityofhamilton.bm to obtain a full copy of the Corporation of Hamilton’s audited financial statements.

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Comments (5)

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  1. Francis says:

    The CoH has done a sterling job cleaning up the mess of the previous administration and their PLP stooges.

  2. Really says:

    This is wonderful, and will be even better next year with all parking freebies being resolved! Great news! And great job! Thank you!

  3. SO Far SO good... says:

    Fantastic! wow… what a difference 2-3 years makes in replacing that crew that was in office prior.

  4. Triangle Drifter says:

    It is quite remarkable what can be achieved in a short time when you have honest competent people running the COH.

  5. LongBay Trading Inc. says:

    Well done CoH !! Agree comments about honest people that are competent and who work for the better of the City – the results prove it.