For Immediate Release
24th JUNE 2009

Tauranga City Council Reporting.

Recent exposure of Council’s average rates miscommunication has forced an admission from Council that their average rates calculations and reports are not consistent and therefore misleading. Council staff have now agreed to devise a rates calculation policy which is consistent and transparent.

Leo Mangos (spokesman for Citizens Advocacy Tauranga – CAT) says he is pleased to hear Citizens have helped Tauranga City Council improve their transparency and accountability. Leo says there are many more areas Council must improve. For example, Council’s calculation and communication of the costs of council facilities.

Council’s business case for Baywave predicted an ‘09 profit of $1759 including all depreciation and finance costs. Council staff reported last week Baywave’s operating surplus for the last 11 months was $141,000. “Council is once again misleading Tauranga Citizens” states Leo Mangos. “Council’s 0809 forecast budget actually sets aside $1,550,882 of Ratepayers money to cover Baywave’s financial losses.”

Citizens will remember Baywave cost $19 million dollars to build. This $19 million capital sum attracts ongoing interest and depreciation expenses. These are massive costs which, despite council setting up an expensive Company to manage Baywave (TCAL Ltd), are still sitting in Council’s accounts.

As if the failure to report Baywave losses wasn’t bad enough, Council go a step further by claiming Baywave’s Car park is not in fact a Baywave car park but a reserve car park. This position conveniently keeps the cost of the land and car park out of Baywave’s accounts. Citizens would find the enormous $1.5 million Baywave loss ballooning out if all costs were included.

“The report that Council are tidying up their rates communication is encouraging” says Leo Mangos. “We will continue to monitor the rates situation to ensure Council talk is turned into actions. Council should not stop there however, they need to tidy up the rest of their reporting and communication”.

ENDS

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