WHY WOULD YOU BUY WHAT YOU ALREADY OWN?

WELLINGTON CITY COUNCIL AND FOG

This morning our current CEO suggested Wellington City Council has a lazy balance sheet. That caused me to reflect on the state of our books. 

Our Closing Gross Borrowing for 2013/14 is $397,513,000.00
Our total liabilities 2013/14 are $539,272,000.00

We have revenue from rates of 2013/14 $233,567,000.00
Other income brings our 2013/14 revenue up to $420,262,000

Our total expense 2013/14 is $388,242,000.00

Wellington City Council has a borrowing target of of 105 percent of operating income.

For a household that might work as long as income holds up but if there is a loss of income then it spells disaster. It's called debt based economics. Don't kid yourself Council is in trouble like all economies that are debt based.

THIS WEEK THE DRAFT ANNUAL PLAN 2013/14

THIS WEEK THE DRAFT ANNUAL PLAN 2013/14

WELLINGTON CITY COUNCIL FINANCE EXPENSE

INTEREST ON DEBT OVER THE LAST FIVE YEARS $92,292,000.00

WELLINGTON CITY COUNCIL INTEREST ON DEBT FOR 2012/13 $21,000,000.00

WELLINGTON CITY COUNCIL INTEREST ON DEBT FOR 2013/14 $22,895,000.00