Jackson's financial picture suffered another blow last summer when Moody's Investor Service withdrew the rating for general and special obligation from the city of Jackson because - what else - the city couldn't produce an audit for the 2023 fiscal year. Moody's reported July 2024:
New York, July 25, 2024 -- Moody's Ratings (Moody's) has withdrawn the Baa3 issuer, general obligation unlimited tax and special obligation bond ratings of the City of Jackson, MS. This rating action concludes the reviews with direction uncertain placed on April 19, 2024 due to lack of sufficient information, including audited financial information. The affected issuer's debt totals approximately $244 million in outstanding debt. RATINGS RATIONALE Moody's has decided to withdraw the ratings because it believes it has insufficient or otherwise inadequate information to support the maintenance of the ratings. Please refer to Moody's Ratings' Withdrawal of Credit Ratings Policy, available on our website, https://ratings.moodys.com, for more information.
The city did not produce a comprehensive financial report for the 2022 fiscal year until August 2023. Jackson still has not produced a comprehensive financial report for the 2023 fiscal year.
The Lumumba administration dismissed the internal audit department in September 2023. The City Council debated changing auditors in June 2023. JJ reported June 7, 2023:
The Jackson City Council held yet another clown show last week. The City Council discussed the 2022 annual audit with past auditor Scott Hodges of Tann, Russ & Brown. Instead of a serious discussion of city finances, what took place was a fount of foolishness as the Council asked if the audit would be finished by the end of the summer even though the city had not hired Mr. Hodges nor provided him with any financial information.The withdrawal of the rating means Jackson will pay higher interest rates when borrowing more money.
27 comments:
I didn't think there was anything left for Antar to destroy, but I forgot about Bond Ratings.
As a CPA there isn't enough money in the world to make me take on that audit.
Jackson has 0 chance of paying back $244M.
Why are so many candidates running for Mayor? Do they not realize what they are getting into?
So.....can Lumumba count this as one of his many accomplishments?
No need for audits when you have soul!
Audits are the tools of imperial racists . . . because there is no excuse for this incompetence.
What in the he!! has Jackson spent 244 million on ?
Is there any hope for the city we once knew?
Given the current maladministration occupying City Hall it might not be a bad thing if the City has difficulty obtaining new loans.
Typical Jackson !! The Feds and State of Ms. are paying for everything so where is the money going? Nobody knows, or cares! As a side note cities are required by law to have annual audits unless changes have been made recently.
One of the news stations was reporting it as “Moody’s deals blow to Jackistan” instead of Jackistan incompetence has consequences.
In addition to higher rates, Jackson will not be able to apply for the grants that they never applied for (but claimed that they didn't get because of environmental racism. )
Who would even want a bond enough to check the rating. Do they have an auditor for 9/30/23.
If Jackson can't get a bond, it will be hard for them to remain a city.
Waiting for Shock-way to decry that this decision is
based upon racism.
Junk bond status for a junk capital city.
Congrats Antard! When there seemingly isn't anything left for you to totally f*6k up, you persevere and find a way.
This is pretty wild. A city that can’t complete an audit and their ability to finance things goes completely in the mud. Not sure what other ratings agency covers Jackson but can’t imagine it will be long before they pull out.
Patiently waiting on Lumumba to blame this on racism, someone else, a misunderstanding, or a myriad of his other typical excuses using the word “right” while bullshitting his way through an explanation.
Horhn and the other candidates need to stop the nice guy act and start taking it to Mayor Incompetent in all these various forums.
"It's only a 'perception' of a low credit rating. Right?"
Progressive, Radical.
For the lawyers or CPA's: How bad does it actually have to get before Federal receivership for the entire COJ - not just water/sewer?
State law would have to change. Cities aren't allowed to file bankruptcy in Mississippi.
March 20, 2025 at 8:42 PM
+100,000
@9:09 taking a look at Lumumba's shoddy campaign finance reports, no one should be truly surprised. In most any other well run city someone like Malembeka, at the minimum, would be summarily fired for allowing this to happen. I'm convinced that some of Jackson's problem with surface sewage isn't due to leaks but, rather, Lumumba himself crapping all over the city.
Too bad Jackistan sat on the 40 million bond so long, now it’s gonna cost a lot more.
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