Before Bret Schundler privatized the water management, the city received surplus revenue.  Then Schundler put ads in the newspapers on privatization.  He said the city would realize $35 million in revenue in 5 years.

United Water bailed out Schundler during a budget year when it gave $4 million, upfront to the city. By that time, the city has become a junkie looking for a "quick fix" for the budget.  But, in reality, Jersey City lost a lot. 

The contract gave United Water a windfall.  Any collection above 70% stipulated  bonuses between 5% to 25%.  So the usual happened.  Jersey City's taxpayers bonded more than $4 million in capital improvements each year (past $12 million) on capital improvements projects. 

The city's first investment of $4.5 million was new equipment that read water bills more efficiently.  Taxpayers' bonding debt increased so United Water can make a profit.

United Water subcontracted to PSE&G to read the meters so their profit really increased.   What a deal! United Water is not putting one cent for capital improvements, they subcontract the job, and receives bonuses for higher collection rates on the backs of taxpayers!

During the public hearing, former Mayor Cucci and his former aide, Jerome Lazarus, spoke on the pending water contract. Their questions were on the Hoboken contract.

They knew that the Hoboken contract would expire soon and asked if the renewal would be treated as a new contract.  The city's agreement stated United Water would receive 25% for new accounts.

Council-President DeGise and Ward D Councilman Gaughan told them that the Hoboken contract would not be treated as a new contract.  Well, that didn't happened.

When the Hoboken contract expired, United Water was credited with a 25% (700,000) as a new account!