Tauranga City Aquatics accounts to 30/6/2012 say that buildings and improvements increased in value by $3.9m. It is specialised assets that annually generates large losses and a lot of expense, how could it have increased in 'value”?
The Local Government Act requires TCC to put aside cash equal to the depreciation annually, so TCC puts aside cash for TCAL annually and then spends it on TCAL to pay for large costs but these don't all show in TCAL's costs.
It is a asset replacement sinking fund that TCAL never puts money into and never has to pay back. TCAL's audited accounts do not show how much money has been put in, what has been spent or what is left. End result, TCAL's expenses and debt are shown to be a lot less than they really are by millions annually. The ratepayers are paying the money in either from increased rates or more debt, we just don't know how much.
What we are told is that in 12 months to 30/6/2012 TCAL owed $4.8m more to TCC, in addition $4.574m was paid towards the running costs (from rates, called 'income” and not a loan?).
To date ratepayers have borrowed $27.6m to pay for shares and loans to 30/6/2012 and for seven years paid around $4.5m pa for running costs.
If someone else pays the bills then a revaluation appears is just smoke and mirrors!

I Stevenson, Tauranga.