SAN DIEGO (Press Release)–San Diego City Councilmember Marti Emerald highlighted false allegations about San Diego’s creditworthiness. After reading an article in a national publication which stated municipal bonds issued by the City of San Diego may not be a good investment, Councilmember Emerald brought the publication and the article to the attention of the full City Council on Tuesday preceding a bond approval vote. “I want to get this on the record,” said Emerald.
During Tuesday’s Council session, The City Attorney’s office stated there is no truth to the allegation in the article, this is a misstatement, and the City is not considering bankruptcy. In addition, the City Attorney said, “This is exactly the type of due diligence by Councilmembers contemplated by… and incorporated into the City’s disclosure regime.”
The article appeared in the latest edition of a newsletter calledThe Bottom Line, saying the City of San Diego, as well as the City of Harrisburg, PA, and the New York City Area Transit Authority, is mulling over Chapter 9 bankruptcy. Marilyn Cohen, CEO of Envision Capital Management, Inc., says she got her information from Bond Buyer Today.
Jay Goldstone, the City’s Chief Operating Officer told Emerald’s office, “We are going to try to get this statement retracted. In any event, the City is not contemplating or exploring the idea of bankruptcy and has NO intention of doing so.”
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Preceding provided by San Diego City Councilmember Marti Emerald