Regarding last week's Sun, pages 6 and 7 . Both TCVL and TCAL reported by Andrew Campbell state that deficits in operating accounts of both Baypark and the pool complexes were covered by increases in the valuation of assets. What absolute horse manure, Sir.
If I went to my board of directors with that explanation of annual loss, I would be laughed out of the room.
The operating account is completely different to the capital revaluation account. It seems a measure of council and ratepayer disengagement, that such an explanation is expected to be accepted without question.
Furthermore, readers may be unaware that council assets are re-valued at regular intervals . After this exercise, depreciation is charged on the re valued figure less the age of the asset.
This method of charging depreciation is unavailable to the private sector and inevitably results in higher rates demands. There will also be a very large corresponding eepreciation figure in council's records, funded by ratepayers. Council may suggest that we are simply prepaying for assets which will become obsolete at some time, but an awful lot of money is stockpiled by council in the meantime.
Why the discussion on the excess rate recovery? It should be used to lower the next year's rates. Surely this is a the most logical and elegant use of these funds?

Mike Giles, Tauranga.