WorkBoot Blogs » The Big Financial Report - Released!
The good news is - The PJ and Associates report on the Financial Health and Sustainability of Kaipara District Council has now been released in the public section of the Council’s business papers. You can read the report here
The other good news is – You don’t need to come to Dargaville
I’d really like to get your comments on this report. What may be argued is, with the Report having been released, that there is real interest from the community in what the report has to say.
So if you believe that the Report has important issues to debate please consider posting a comment on my blog or in the Financial Accountability forum so the press can understand that there is real interest from the community. The debate on the issues will be enhanced if we can keep all of our comments as professional as possible.
On a plain reading of the report, the Mayor’s assurances were at least a little optimistic.
In his media release of 14 July the Mayor stated that the financial review –
“found no concerns with Council’s position apart from the debt on the Mangawhai Community Wastewater Scheme which will require management.”
However the report starts out by stating -
“The major financial issue facing Council is the amount of existing debt and the lack of cash reserves. The current financial position is largely caused by two significant contributors - the funding of the Mangawhai wastewater scheme and the costs of the District Plan review. In addition future expenditure for the improvement of infrastructure assets will require additional loan funding as Council has no cash reserves. Current Council debt, while not reaching Council's limit under its borrowing policy, is considered very high and poses future risks for Council.” (my emphasis)
The financial issues for Kaipara are not simply the matter of a badly executed wastewater scheme. As this quote demonstrates there are many issues.
It does not, and has not, seemed to me wise to excuse all the above issues by referring only to the over-budget Mangawhai EcoCare scheme when clearly it is only one of the issues that Council must face up to and deal with.