I am responding to the e-mail electoral campaign of Mark Groos in respect of Council finances. I am not a candidate for Council office but I have made a comparative study of this city's finances compared with 5 other cities of similar size and I am qualified to do so. I am concerned when a candidate for office so denigrates our Council that impacts on the City's reputation.
Mark suggests that the Council's ability to pay it's bill's has deteriorated by 23% and implies Council will soon not be able to pay it's bills. Not so! The Auditor General's report on the City finances found it to be in sound position. Mark should read the City's Financial Statements. (The Auditor General's only negative comments ever were on the draft 10 year plan.
When the finally accepted plan was submitted itwas approved by the Auditor General.
Mark claims that the City's Capital budget has 'blown out” by $8m but ignores the significant effect of revaluation of the City's assets which is required by Accounting Standards.
The so-called blow out of borrowings (which is only a projection) has occurred because of the re timing of the Sale of Route K.
Finally Council does not have a profit because profits would come from ratepayers but it has a Surplus from Operations which has reduced and in these economic circumstances this is only sensible.
Perhaps the candidate needs to do more research to get a better understanding of the position with a focus on actual and audited results rather than projections.
Ken Collings, Welcome Bay.