Now is a very opportune time to visit the TCC financial lemons, with TCAL (Aquatics), TCVL (Stadium) having just reported very ugly financials and TCC ratepayers have no idea what funding deals TCC has with them. A reminder total TCC debt has risen from $50 million in 2002 to $310 million in 2010 and now approaches $400 million. However, that is not where this sad story is going to end by any means, having regard to the following $ numbers: -
CAPITAL EXPENDITURE Probably looks like this …
• TECT Arena (balance to finish) $ 20m
• The Strand/ Waterfront redevelopment $ 30m
• Southern Pipeline & Te Maunga Sewage upgrade $280m
• Leaky homes (who knows?) $ 50m
That's about $800m with current TCC debt added.
ANNUAL OPERATING LOSSES (Projected)
• Baypark Stadium $2.5m
• Baypark TECT Arena (estimate) $4.0m
• Route K $3.0m
• Baywave/Hot Pools TCAL $6.5m
• Art Gallery $0.9m
• Museum proposals (if proceeds) $4.0m
TCC will be committed annually to losses of around $21.4m on these which must be added to debt or rates, there are no other options.
Plus lurking in the wings are: Boardwalks, Mount Greens, Arataki Centre, Jazz Festival prop-ups, Libraries/Art Gallery, Mount Hot Pools and various other odds and sods. The outlook is bleak and as they say, you can hide most things (and TCC do)
BUT you can't hide debt and rates!
R Paterson, Matapihi.
15 comments
$80m DEBT FOR TCC
Posted on 23-12-2011 18:17 | By SCARLET PIMPINEL
The interest on that will be around $60-65m so that means about a 30% increase in rates in the next 3-4 years just to try and pay the interest alone!
HIDE & SEEK
Posted on 23-12-2011 23:39 | By DORKLANDER
With the cheque seems to be the problem, who actually has it and what they are doing when they have it is the mystery only revelaed well after the event!
SHOCKING STATE
Posted on 26-12-2011 13:32 | By CRUMPY
That means that rates have to go a lot higher, how else is all to be paid?
WHAT IS LEFT
Posted on 27-12-2011 11:12 | By Roadkill
The only one not yet certain is the Museum annual loss of $4m, the rest are coming for sure, so with $20m in losses annually and $30m more in interest all adding to rates the current rates will need to increase by 50% just to cover that WOW.
NEED TO MOVE TO WBOPDC
Posted on 27-12-2011 20:28 | By WORMTONGUE
Sounds like a better idea ad leave the debt and all the trouble here for the bright sparks to figure all by themselves. Dont hold your breath it will take a while to sink in.
RATIO OF DEBT AND INCOME
Posted on 28-12-2011 00:37 | By NEFARIOUS
All sounds really bad, what is not well understood is that the total debt of $800 million needs to be no more than 2.5 times the annual income of Council. At present that is just $155 million. Based on $800 million of debt then income needs to be $320+ million. As rates are $100 million that means that rates will need to increase by about 2.5 to 3 times now. So anybody realising that will want to work in Tauranga but live outside the Tauranga Council area so as to avoid these massive rate increases. If you pay $1,800 now then in 3-4 years it will be about $4,500-5,000, we are all meant to be in the middle of economic hard times.
Future of TCC under debt
Posted on 28-12-2011 14:34 | By algail
I don't think the money gathers and wasters will be able to raise the rates as high as many seem to think. Wasn't legislation passed that this rate demand to be the last than can be any higher than the Cost of living index . Any higher demands will have to be voted on by the ratepayers. Now that could be a risky situation because if there are enough people to vote the current council in then unless a huge proportion of them move on there could be enough to vote for a rate increase beyond the growth rate. Question. Do we need to vote the council out? Yes we do. Can we ? I doubt it, there are too many uninformed voters in the district and those very people could well vote in favour of a higher than normal rate increase. The only way forward for Tauranga is for enough dissenters to get together and form a group to campaign against the current lot and so revitalise / reorganise Tauranga and get it out of debt. I am sure there are enough of us about to put a few bob in and start preparing for the next election. Anybody out there prepared to take up the challenge and get the ball rolling?. They will have my support for one and hopefully thousands of others. Alastair Bethlehem
RATES MUST INCREASE HEAPS
Posted on 28-12-2011 22:49 | By Secret Squirrel
There is no choice, $800m debt means about 20-25% increase in rates for three years,red it and weep!
THE STORY FROM TCC?
Posted on 29-12-2011 12:14 | By WOFTAM
It is a little bit different from that, wonder how they are a gunna wander their way through that one?
HELLO ALGAIL
Posted on 29-12-2011 23:22 | By Secret Squirrel
If only we were so lucky that COuncil was limited to CPI unless voters agreed otherwise by a majority. No such law exists and of course and as usual it was talked about a year or so ago, but it has not happened so it is still open slather on the TURKEY's of Tauranga!
VOTED FOR THEM
Posted on 31-12-2011 00:09 | By YOGI BEAR
So what do you expect, of course more of the same as now. You want different then you need to look past this lot to something different and better.
BURIED AND DEEP!
Posted on 31-12-2011 14:10 | By MASSA KISSED
That is the answer to the question, sadly we are all being dragged along with them.
THEY DONT REALISE
Posted on 31-12-2011 21:28 | By DRONE
What they are doing to others, if the City was the employer and ratepayers were the employees then the City would be deemed to be "an unsafe work environment" as it is hazardous to the well being of all emoployees, then we would all have to be subject to an emergency evacuation!
SCARLET PIMPINEL
Posted on 02-01-2012 12:58 | By WOFTAM
The interest is a big problem, but the TCC total income including rates will need to rise to $320m as a minimum to keep the ration of debt and income in line. For that to happen rates will need to be at least $270m in say 3 years time, rates now are $99m so existing rates need to triple just for TCC to retain its currnet debt rating grade. They fail to comply then the interest rate on debt will also increase, same result need more rates, either way it is BAD or WORSE-A!
BORROWED ON A DREAM
Posted on 02-01-2012 22:14 | By SCARLET PIMPINEL
That the money would come in from some place unknown and appear.
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