2 July 2018

Media: Rotorua Daily Post

Topic: Mudtopia finances

Inquiry

I refer to an LGOIMA request posted on your website https://www.rotorualakescouncil.nz/our-council/officialinformation/OIA2018/Pages/Official-Information-Request---31-May-2018.aspx

I will be writing a story about this today and have a few supplementary questions as follows.

• What was the initial loss indication. My records show $468k.
• Can you please confirm the information on the website, that the total cost of Mudtopia was $1,681,814. And also confirm what the total loss was.
• When council decided to remove their association with the event, there was an indication that it hoped another partner would pick up the event. Has the council had any interest from another party or partner in picking up the event and running it?
• Council members have also said in the past "We knew it was a risk". Was that risk worth it? Given these numbers?
• Are these numbers likely to change any further? As it seems they have altered since the May council meeting to now.

Response

See below information in response to your enquiry regarding Mudtopia.

The LGOIMA figures are correct - they are the final figures. However, please note that not included in those figures was revenue of $908,900

In August last year there was a report which provided estimated financials, presented as 3 possible scenarios (see the report HERE).

There was then a presentation in December, shortly after the event, which estimated the shortfall at $460,000 although obviously those were not final figures.

Cost savings were made, however revenue fell shorter than anticipated and the final shortfall was $600,238.

There is some difference between the figures in the LGOIMA and those reported to O&M in early May due to coding of some costs (some have shifted between operating costs and capital expenditure) and because the contribution from MBIE was not finalised at time of reporting to O&M in May.

As indicated at the May O&M meeting there are a couple of parties interested in picking up the event and running it but nothing confirmed at this time.

Several councillors did express opinions during the discussion on Mudtopia at the May O&M hui (see THIS LINK for the livestream recording if you wish to refer to these. The discussion starts at 2hrs52mins) but you would need to speak to the elected members for any further thoughts about this.