City debt bouncing back

The city's debt is expected to be around $391 million next year following the recommendation from the Finance and Risk Committee.

This week the committee recommended the council a borrowing programme of nearly $129 million for the coming year.

Treasurer Mohan De Mel says the final debt for the 2016/17 year is likely to be a little less than the $391 million, because development contributions payments are probably going to be higher than budgeted.

Thirty million dollars of the $129 million is going to pay off loans of $30 million that are maturing this year.

Loan financed capital projects this year are $16.8 million on stormwater projects, $10.9 million on wastewater and $12.3 million on water.

There is $22.3 million being borrowed for local roads, and $8.3 million on information technology.

The total includes $7,803,958 of projects continuing from the last financial year for which the borrowing was approved, but the money notspent. These include the Marine Precinct and the Matapihi section of the southern pipeline project.

The carry forward expenditure also includes an amount of $112,000 for sewer upgrade in the Lakes. The money was approved during the Annual Plan deliberations but was omitted from the Annual Plan 2016-2017 in error.

The new projects approved in the Annual Plan 2016-2017 and carry forward projects from Annual Plan 2015-2016 are $98,896,109. Just over 40 per cent of the amount is growth projects funded from Development Contributions, says the treasury report received by the committee.

These are funded from both internal and external funding sources. Internal funding sources are mainly Reserves and Internal Debt Retirement.

In July, the council reported debt for the financial year ending June 30 was $297 million compared with an expected figure of $355 million – caused by the council deferring capital expenditure of budgeted projects like the Marine Precinct, an unexpected $10 million from land sales and an early $10 million from development contributions owed to council.

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9 comments

A reality check

Posted on 31-08-2016 07:26 | By The author of this comment has been removed.

TCC is a business. I ask how can they say that all is well with $400,000 in debt?We are, we are being told, a thriving city. Why then, this debt?If I went to the bank and showed the fiscals with these figures, I wouldn't expect to get a loan approved.My answer - as in any finances - pay of debt first. No new castles for bureaucracy, grandiose museums, just pay of that elephant in the room!


Whatever....

Posted on 31-08-2016 08:01 | By Jimmy Ehu

besides all the other finance shuffling.... why the hell are we being asked to pay for a sewer upgrade at the Lakes?, surely developers consent fees should cover this?, ooops sorry different strokes for different folks!!!,


more like half a billion $

Posted on 31-08-2016 08:54 | By Captain Sensible

If I ran a business like that, I would be put in an asylum. What a useless bunch they are and we need to get each and every one replaced at the elections.


@Jimmy Ehu

Posted on 31-08-2016 09:43 | By Taffy

CorrectFact:Who is the CEO of the main developer at The Lakes.Fact:Who is the instigator behind CAGMake your own mind up people.Elections are coming.If we don,t do something I dread to think what the debt will be in 2 years time.


Bigted

Posted on 31-08-2016 10:10 | By jed

They say the debt is OK because they can just increase rates with impunity.That debt is around 8k per ratepayer. And,if they cannot reduce debt during a building boom then just wait till the inevitable bust!!


Id

Posted on 31-08-2016 10:36 | By Capt_Kaveman

like to see the real figures, like last election they try to spruce up the figures only to find out its a bit more


Dont forget

Posted on 31-08-2016 11:50 | By Crash test dummies

The debt number they are giving you are after selling Route k last year that makes the debt look good for a short time by $62m or something like that.


Smoke and Mirrors

Posted on 31-08-2016 20:53 | By sobeit

Rearrangement of the Titanic's deck chairs for this Council.Nothing changes. Fiddling around with the Route K debt repayment might fool some but this debt repayment had been organised well before this Council. Facts are that this council have not fulfilled any undertakings they gave voters.The staff are in control of the $$$ and the Elected Council. Good case for a Commissioner and save the cost of an ineffective democracy.


CRAP FIGURES

Posted on 31-08-2016 22:41 | By mike harman

How can the council produce an end of year figure of $297mil as at June the 30th. Then a month later it is well over 355mil.If that is the case then the useless CEO who only seems good at hiring staff that we do not need and the Treasurer both need to be sacked, in private enterprise they would be both long gone.we need a council of staff that can do the job and a Mayour that can reign this monster debt in.All this council has done is spend on things that we cannot afford eg the steps at the waterfront the marine precinct.Lets hope we get a more astute mob in this time.


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