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.
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.
posted by pepptalk at 12:24 AM
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