Tauranga City Aquatics Limited's annual report shows the council controlled organisation (CCO) made a loss of $1,138,000 in the last financial year.
The figure is after depreciation and debt servicing, but before tax.
The previous year's deficit was $1,278,000 – $140,000 more.
The ratepayers' operational contribution to TCAL from the council remains unchanged for 2011 at $733,000.
Problems at the Mount Hot Pools placed TCAL under the media spotlight this year.
This annual report was received at Monday's Tauranga City Council projects and monitoring committee meeting, and is available online.
The reduced losses follow a year in the spotlight for TCAL over the now halted multi million dollar pools expansion project and the winter shutdown for emergency repairs.
The council then decided against taking the expansion project resource consent application through the Environment Court.
Following these events, its board chairman, Warren Banks, and board member, Mike King, resigned.
In spite of all that, the council's projects and monitoring committee chairman, Bill Faulkner, says the city's 30 year old pools network is performing comparatively well.
The network is obtaining 30 per cent of its income from revenue, which is a far better result than is being achieved by any other pools-owning council in the country.
'By and large they are doing a good job,” says Bill.
TCAL's longer term future is to be discussed as part of a general CCO review the city council is about to undertake
TCAL operates the Baywave TECT Aquatic and Leisure Centre, Greerton Aquatic and Leisure Centre, Mount Maunganui Hot Salt Water Pools, and the Memorial and Otumoetai Pools.
TCAL also operates two health clubs: Clubfit Baywave and Clubfit Greerton.
User visits across the network decreased slightly for the 2010-11 year.
Predominately this is the result of the closure of the hot pools from June to September for emergency maintenance works.
The costs of the 18 week shutdown will appear in the next year's result.
The chairman's report states TCAL will this year be implementing an updated asset management plan to replace the existing 2006 plan.
19 comments
But wait till next year
Posted on 29-11-2011 12:27 | By Gee Really
When will the costs of the now discarded upgrade, failed resource consent, increased CEO salary, works done during the shutdown and newly approved works show up? What effect will they have next year? It probably can be estimated now and it would be interesting to know.
AUNTY BILL IS LOST AGAIN
Posted on 29-11-2011 13:47 | By WARTS N ALL
The actual ratepayer "subsidy" is not $733,000 it is a lot more, that number is only one part of it, the bit that TCC staff place under the nose of Councillors to approve. The rest of the money thrown into the TCAL pot includes $2 million odd in more loans (Councillor have not been asked to approve that becasue TCAL promised that ratepayers would not 'pay' for the failed resource consent costs, so it is a loan instead, how does that figure out) then there is $5.8m in what is called "grants", so all up the actual money into TCAL is more like $7.6+ million and that is without the proper interest and administration costs also being included correctly to. Where is the "running well part" there.
Yeah Right
Posted on 29-11-2011 14:06 | By KAMIKAZE
Just wait until this piece of nonsense is dissected bit by bit then will see how it stacks up. For TCC Councillor Faulkner to state " that by and large they(TCAL) are doing a good job' only reinforces he lives in cuckoo land.
No Surprise
Posted on 29-11-2011 14:24 | By Jitter
There is nothing surprising in these figures. The fact that this years loss is $140,000 less than last years is something to be thankful for. However a private "business" such as this would not be allowed to continue losing money at this rate and would probably be put into receivership. If put under the direct control of TCC at least some of the current 150 staff positions could be diestablished to make a sizeable saving. TCC businesses cannot be allowed to continue making such losses.
Any normal business...
Posted on 29-11-2011 15:07 | By SpeakUp
...would be bankrupt and the management investigated for bribery, cronyism and embezzlement. Not so Council's owned rort. We the ratepayers have to fork out for these scoundrels. But I believe the day of reckoning will come. Every dog has its day.
costs to use the facilities
Posted on 29-11-2011 17:04 | By bcfish
no one wins here, rate payers complain about the cost and their contribution and then the public complain that the cost to go to the pools is too high, and then ask how can they operate a business at a loss, if you want them to operate with profit, don't complain if the cost to go to the pools is expensive, I think they are doing the best job they can to try and please everyone.
REAL SURPRISE!
Posted on 29-11-2011 20:12 | By DRONE
No JITTER, the truth is TCAL got more $$$ from TCC and then changed the name on it from "RATES" to "GRANTS" so it can then pretend it is not from TCC ratepayers. Then created a few other names or three for other money chucked in the black hole at TCAL also. looks to be an extra $1m or so, end result and before the $2.4m repair bill next year the losses are bigger and no sign of improvement anytime this century!
In one word -
Posted on 29-11-2011 21:15 | By Hebegeebies
.
golden handshakes all round
Posted on 29-11-2011 22:26 | By Capt_Kaveman
.
What about the waste beforehand?
Posted on 29-11-2011 22:33 | By carpedeum
How much was paid out to Mainzeal before the approval was actually made by the council?? And - as we all know -DID NOT get approved to proceed
Chairmans report away with the fairies
Posted on 30-11-2011 09:13 | By Openknee8ted
The pools closed about the 9th June, this report is for the year ended 30th June, so according to the chairman the loss of about 21 days trading was the predominant reason for the user visits across the network decreasing.
14GK
Posted on 30-11-2011 09:15 | By 14GK
After an extended period of closure of the Mount pools the loss went down? Maybe they should close for good and eliminate the losses completely!
Business Practise
Posted on 30-11-2011 09:32 | By bigted
It is normal business practise to call for tenders for works to be done. As a public company, we (public)have the right to view any documentation regarding TCAL (Official Information Act). This includes minutes of any meetings, tender documents etc etc. I suggest this be asked for by Sunlive, thereby clearing the air for all parties.
Wot a load of bollocks.
Posted on 30-11-2011 11:58 | By Zara
More blah, blah, spin and omissions. As Mr Grainger would say "youve all done very well".Pay rises all round and bugger the ratepayer.
OFFICIAL INFORMATION
Posted on 01-12-2011 23:36 | By MASSA KISSED
BIGITED, the only official information is that created to be distributed publically, it is massarged and manipulated so as the desired glossly picture is created. The real story is denied via an Official Information request. So end game here is if they publish it willingly then it is not the truth or not the whole truth unless confirmed by someone outside of TCC, not on the payroll, not a consultant and certaianly not one of the Crosby Crew!
DOES NOT ADD UP
Posted on 04-12-2011 17:49 | By YOGI BEAR
The door is shut, the loss is down and they told us before that there were profits? Now they are saying the profits are 'down', normally that means like before they were higher. So where is the 'profit' part in this. Like this is called "MIXED MESSAGES" or perhaps better described as 'BS'.
HIGEST PAY IN TCAL
Posted on 04-12-2011 21:04 | By DORKLANDER
In 201 it was about $130,000, in 2011 it is $170,000 and we do know of one trip to Australia in about May 2011 also, wonder what that cost.
Speaking with Falk Tongue
Posted on 16-12-2011 18:18 | By Val Hallah
I cannot believe that these people (TCC and TCAL)have the confidence to think that we the rate payers and citizens of Tauranga are as naive as they seem to be, that these results are acceptable, let alone an improvement. It is quite frankly an insult to the average persons intelligence. The seem to feel that the misleading comments and conflicting information and assurances will somehow fall into a semi coherent picture of what they believe may bail them out of what can only be seen as a very poor situation. Top heavy in management and staffing, compounded by no or little regulation on spending and no sense of common business practice, is and always has been a recipe for disaster. Why are we expected to put up with it, and at what price to our community, before common sense prevails. Come on people, open your eyes, and join the in support of those that wish to see some sort of accountability and honesty in what is being presented and done with our city.
celebration
Posted on 22-12-2011 17:34 | By tonyb1
Lets have a party to honour the hard work put in to not loosing as much money as expected, look great on a C.V or is it just some shifting of the bottom line figures to make it seem that way ????
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