12 October 2018
Media: The Mud
Topic: Lakefront redevelopment
Enquiry
A number of people have raised queries with me regarding the video produced regarding the lakefront and forestry re-development.
1. Who produced the video?
2. How much did it cost?
3. Is this an accurate portrayal of what is planned?
4. Regarding the lakefront section, queries have been raised regarding safety as portrayed in the video, for example:
Will people be able to ride freely on the broadwalk (not sure if that is the right term) jutting out into the lake?
Will those constructing the walk area include rails so that cyclists and walkers (particularly children) won't be in danger of falling in and potentially drowning?
Has the health and safety of the plan been fully assessed for potential dangers?
Response
Please see below information in response to your enquiry regarding the lakefront development. Please do take the opportunity, if you haven't already, to view all the details that are available on the project page (see link below):
The video shows the concept (not detailed) designs and cultural narrative and the detailed design will factor in all health and safety requirements.
The video was produced using existing video stock and images. The cost was $1200.
The lakefront fly-through' portion is part of collateral provided by the landscape architects as part of their work - this is usual practice.
The boardwalk will be 5 metres wide and designed to be suitable for multiple users including pedestrians, mobility scooter users, people with disabilities and bike riders.
If you want to get a sense of the size of the boardwalk or take a closer look at the concepts there is currently a display of the project concepts in the council galleria (upstairs outside the Council Chamber).
Elected members received an update on next steps' for the lakefront and forest projects at last week's Operations & Monitoring Committee hui which you can view HERE (presentation slides are HERE)
More details about the lakefront project can be viewed at THIS LINK on the lakefront development project page on Council's website.
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Media: Rotorua Daily Post/BOP Times
Topic: Council debt
Enquiry
I am doing a story on council debt in our region.
What is the council's current debt at the moment?
How was the debt accumulated and what is the majority made up of?
How does council plan to pay down this debt?
What are debt estimates for the next year and what is the biggest expenditure and how much?
How much revenue has the council bought in this financial year and where did it come from?
What is the expected expenditure revenue for next year?
Response
Please find our response as follows. We are currently finalising the revenue figures for September 2018 so if you'd like that updated figure, we can most likely get this through to you next week.
Please attribute the following response to Rotorua Lakes Council, Chief Financial Officer, Thomas Colle:
Rotorua is currently experiencing a period of growth. This is positive because it means people want to live here which in turn attracts new business and investment into our district.
To manage this growth and encourage future growth, it is necessary to invest in our infrastructure. To do this sufficiently is expensive, and Council continuously strives to effectively manage the demands for growth and balancing the opportunities for future ratepayers against affordable rates and debt levels for current ratepayers.
At the end of the last financial year (30 June 2018), Council's debt was sitting at $189.66 million.
External subsidies and borrowings are only used to fund capital expenditure relating to improving levels of service and growth. Rates and other revenues fund capital expenditure relating to the replacement of existing infrastructure.
Over the next ten years Council plans to increase its assets by $438.16 million to $1.61 billion. During the same period Council's debt will increase by $55.9 million. Despite the increase in debt Council will still maintain on average 83% equity in its asset base during this time.
The increase in debt over the next ten years is being driven by investment in a number of large projects that contribute to the Vision 2030 goals and growth.
This pie graph shows the projects and how much the projects are predicted to increase the debt by across the next ten years.
In order to reduce levels of debt, Council is investigating selling some assets, however these will only be sold for a fair price.
To curb increases in debt borrowing Council will pay for more of its asset spending from rates and operating surpluses. It's Council's belief that it is prudent to utilise operating surpluses to fund capital expenditure in the future to ensure debt levels are controlled.
As part of Council's financial strategy, to keep debt at an acceptable level, limits for its debt to revenue ratio and external debt levels have been set out in the Long-Term Plan. This is to ensure Council has adequate borrowing capacity in the future to fund unforeseen projects and is able to respond to emergencies.
Council consistently applies mitigations and reviews expenditure to ensure future borrowings are minimised.
As at 31 August 2018, Council had brought in $20.16 million of revenue this financial year (beginning 1 July 2018). This has been generated from rates, fees and charges, subsidies and grants, and investment income.
For further information about Council's financial strategy and debt projections over the next ten years see the 2018 - 2028 Long-Term Plan (page 112) here.
