The future of the Corporation of Hamilton hangs in the balance after the City’s $30 million debt was laid bare in its financial statements last night.

Accountants Moore, Stephens and Butterfield conducted the 2014 audit and noted the potential impact of the $18 million owed by the corporation to Mexico Infrastructure Finance over the Par-la-Ville hotel project.

The firm’s statement concluded: “These conditions indicate the existence of a material uncertainty that may cast significant doubt about the corporation’s ability to continue as a going concern.”

Last year’s accounts reveal that the city’s net debt was just over $31 million, which included the $18 million and was 50 per cent greater than its $20 million statutory limit. In 2013 the corporation’s net debt was just over $13.3 million.

However the figures also showed that the Corporation of Hamilton received $21,090,794 in revenue in 2014 — $300,000 more than it had budgeted for.

Furthermore the city’s expenditures for 2014 were $39,527,871, which included the $18 million owed to Mexico Infrastructure, when it had initially budgeted for $20,625,912.

“These accounts call into question the ability of the corporation to meet its ongoing expenses,” Mayor Charles Gosling said.

“We have an aggressive creditor that wants their $18 million.

“We are working with Government to see what we can do because we have to meet that obligation.

“We need to get our parking revenues back up because we are losing out on about $1 million a year as a result of the Supreme Court’s ruling on the Parking Ordinance.

“We also have to look at other revenue streams. Government has offered us another revenue stream that I am reluctant to identify at present but it could provide about $2 million fresh revenue every year.”

The draft audited financial statements are expected to be handed to Home Affairs Minister Michael Fahy on Friday.

The 26-page document reveals that in April 2014 the Corporation of Hamilton entered into a host staging agreement with the Conference of Black Mayors and paid out a hosting fee of $100,000.

Furthermore according to the audit the corporation spent $162,578 with the Fairmont Southampton for food and beverage and incidentals in relation to the staging agreement. Legal actions embarked on by the corporation against the Ombudsman and the BPSU are also itemised in the financial statements and to date have cost the city $148,000.

“The revenue stream surpasses the revenue budget for 2014 and given the economic climate that is extraordinarily good” said Mr Gosling. “But it is the expenditure that has started to creep up and go in the wrong direction.”

Mr Gosling told The Royal Gazette he believed the Corporation could find a way to meet the repayments on the $18 million owed to Mexico Infrastructure Finance.

“The priority now is meeting the $18 million guarantee in a way that will not affect the staff of the Corporation,” he said.

“I do not want this to end in a free fall selling off of real estate at below market prices.

“You can feel the breams out there circling waiting for the feeding to begin.”