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Finance (Interest) Cost(s)
2017/2018 Annual Plan
There was much joy and jubilation Hamilton receiving $272 million interest free from the Government $1 billion infrastructure fund. The current debt is $434 million; finance (interest) cost is $21,819,000 (nearly $22 million per year). The increase… View moreFinance (Interest) Cost(s)
2017/2018 Annual Plan
There was much joy and jubilation Hamilton receiving $272 million interest free from the Government $1 billion infrastructure fund. The current debt is $434 million; finance (interest) cost is $21,819,000 (nearly $22 million per year). The increase of $272 million will push the debt to $706 million with additional cost of $27.2 million per year to pay back the $272 million takes the annual interest (finance) cost to $41.019 million and pushes the net interest–cost-to-total-revenue to 20.78%.
Current Finance Cost (Interest) $21,819,000
Plus
Infrastructure Fund Payments $27,200,000
$49,019,000 per year
Broken down Council (Ratepayers) have to fund/find
Monthly (12) $4,084,916.67
Weekly (52) $942,673.08
Daily (365) $134,298.63
As well as run the daily operation of the city. All of this takes no account of
:
a. $13.3 million at ‘Waterworld’ www.stuff.co.nz...
b. The Water Pipes leading to the East
c. The ‘Frankton Plan’ the ‘River Plan’, the ‘Ferrybank Plan’ the ‘CBD plan’ and at least another 20 odd other projects Council have pencilled in and some supposedly FUNDED.
d. Oh, the ZOO $15.7 million
e. $34.5 million on Founders Theatre www.stuff.co.nz...
f. Not to mention other ‘Dreams are Free’ Plans/Projects proposed by Council.
If Ratepayers objected to the recent “Free” parking proposal, imagine the reaction when they receive their rates to fund this 20.78% interest–cost-to-total-revenue plus any other ‘Dreams are Free’
Hamilton is in deep do dos.
Austerity is the order of the day – cut one’s cloth…the alternative will be to price people out of their homes, it has happened overseas the conditions are the same.
Have you given our Roundabout Respect survey a go? You’ll go in the draw to win one of four MTA vouchers if you do! And while you’re there learn more about what good driving behaviours keep our city's roundabouts going around. Let’s all improve. Signal when you move, use the correct lane… View moreHave you given our Roundabout Respect survey a go? You’ll go in the draw to win one of four MTA vouchers if you do! And while you’re there learn more about what good driving behaviours keep our city's roundabouts going around. Let’s all improve. Signal when you move, use the correct lane when you move, reduce your speed when you move and respect others when you move.
What is mindfulness? How can it be applied in everyday life? Join us at the Cancer Society's free Living Mindfully programme to find out how mindfulness can be beneficial in reducing stress, anxiety and depression, improving relationships, managing pain and increasing well-being and immune … View moreWhat is mindfulness? How can it be applied in everyday life? Join us at the Cancer Society's free Living Mindfully programme to find out how mindfulness can be beneficial in reducing stress, anxiety and depression, improving relationships, managing pain and increasing well-being and immune response.
Our six-week mindfulness course for people affected by cancer starts in Hamilton on 22 August. Visit our website for details: waikato-bop.cancernz.org.nz...
In-depth financial report identifies 10-Year Plan challenges
Wednesday 12 July 2017
A proposed approach to measure Hamilton City Council’s financial performance as part of discussions for the city’s 10-Year Plan was presented to councillors in a public briefing session today.
The … View moreIn-depth financial report identifies 10-Year Plan challenges
Wednesday 12 July 2017
A proposed approach to measure Hamilton City Council’s financial performance as part of discussions for the city’s 10-Year Plan was presented to councillors in a public briefing session today.
The Financial Strategy Assessment by PwC identified the key financial challenges for Hamilton in coming years. The report took the 2015-25 10-Year Plan as a starting point and looked at the current and future economic landscape and whether the existing financial approach is the best for the city in the new economic environment.
A revised approach was recommended to ensure the annual costs to run the city are met by the annual operating revenue. The new measure excludes vested assets, all capital subsidies (new roads) and 65% of development contribution revenue (DC revenue).
Under this approach, to maintain day to day operations and the community expectations from the last annual plan, the city would have needed to increase base revenue this financial year by 11.7 per cent, or find cost savings of $12.1M, or a combination of both. This adjustment does not take into account inflationary cost increases, new funding requirements in the coming 10-Year Plan, or growth challenges.
Hamilton City Council Chief Executive Richard Briggs says he will be recommending the PwC approach to the Council’s Revenue Task Force.
“The report is consistent with the financial data supplied to councillors in March of this year which identified the Council needs to address a gap between its base revenue sources and the day-to-day costs to run the city.
“In simple terms, the costs of running the city in the future will not be covered by the rates income and user fees and charges we have budgeted,” Mr Briggs says.
“The report also confirms there are significant growth pressures and a number of unfunded plans and strategies which Council and the community will need to consider as Hamilton sets its priorities during the 10-Year Plan process,” he says.
“Hamilton is experiencing growth increases far beyond what was expected in 2012, when we last set the financial strategy. That strategy was appropriate at the time but six years later we have a totally different economic landscape.
“Base costs to provide services to the city have increased and new legislative requirements have resulted in increased maintenance and capital expenditure costs for our existing assets.
“The Housing Infrastructure Fund proposals are a separate issue and are part of the growth picture – today’s PwC report is about base operating costs and revenues,” Mr Briggs says.
“How this funding gap is addressed is one of the challenges facing the Council – no decisions have yet been made – and today is part of a series of briefings to provide councillors with the best information as we develop our long term plan,” Mr Briggs says.
Earlier this year the Council voted to keep rates increases at an average of 3.8% for 2017/18, as originally proposed. How the city funds its activities in the future will be determined through the 2018-2028 10-Year Plan.
The 10-Year Plan is the blueprint for how Hamilton will build a stronger economy and a more attractive city for families. The Plan is about how the city balances three areas: growth, levels of service and the financial strategy, and will go out for public consultation in early 2018.
Hi neighbours! Hamilton City Council have urged residents to improve their roundabout respect. It's almost every day I witness an almost-accident at a roundabout! Have you seen near-misses at a roundabout in Hamilton? Is there one that is particularly bad for dodgy drivers? Comment below! If … View moreHi neighbours! Hamilton City Council have urged residents to improve their roundabout respect. It's almost every day I witness an almost-accident at a roundabout! Have you seen near-misses at a roundabout in Hamilton? Is there one that is particularly bad for dodgy drivers? Comment below! If you want to test your roundabout skills, follow the link and be in to win!
*Please write NFP if you do not want your comments published*
To all Neighbourly Redlid Garden Bins & Bags customers don't forget to enter our $100 credit draw due this Friday. All you need to do is start following us or recommend us. Thanks to all.
Come along to one of our FREE info sessions to have your all questions answered.
Building a new home is an exciting adventure and Jennian Homes has been building the homes New Zealanders want for over 34 years.
Come and learn from the experts about the hidden costs of building and how to avoid… View moreCome along to one of our FREE info sessions to have your all questions answered.
Building a new home is an exciting adventure and Jennian Homes has been building the homes New Zealanders want for over 34 years.
Come and learn from the experts about the hidden costs of building and how to avoid surprises when designing a home, customised for you, to work within your true budget. Book in for a spot while they're still available! We'd love to see you there.
Hi neighbours! I'm looking to have a chat with someone who took part in one of Hamilton's early Round the Bridges events. Did you, or someone you know, participate in 1997-2007? If so drop me a line at kelley.tantau@fairfaxmedia.co.nz!
Hello neighbours,
Last year, this amazing lady from your neighbourhood was named the GARDENA Gardener of the Year. Vera Farrant had raised $100,000 for Habitat for Humanity by selling plants.
Nominations for the 2017 GARDENA Gardener of the Year is now open! Can Hamilton make it 2 years in … View moreHello neighbours,
Last year, this amazing lady from your neighbourhood was named the GARDENA Gardener of the Year. Vera Farrant had raised $100,000 for Habitat for Humanity by selling plants.
Nominations for the 2017 GARDENA Gardener of the Year is now open! Can Hamilton make it 2 years in a row? Surely there are other superheroes like Vera doing terrific work in your community. Send your nominations to NZ Gardener, PO Box 6341, Wellesley St, Auckland. You can also enter on our website, nzgardener.co.nz.
We invited a member of the Neighbourly team to give an electric car a go for a couple of weeks. Find out what Sarah learnt about city living with an 'EV' and what our plans are for our staff fleet over the next few months!
When it comes to preventing crime, a nosy neighbour is considered a good neighbour. With 11,200 hou…
Hi neighbours! If you haven't received your enrolment update pack, you may not be enrolled to vote in the General Election. Make sure you're ready to vote! Enrol, check, or update your details now.
Hello neighbours,
I can help you with all kind of PC, notebook, and tablet computer repairs and services. Reasonable call out fees.
Please contact me if you have any computer related issues.
Thank you.
Edi
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