by Bryan Pepperell
The city council’s chief executive officer yesterday suggested that the council has a lazy balance sheet. That has 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 $420,262,000.00
Our total expense 2013/14 is $388,242,000.00
The 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. The Council is in trouble, like all economies that are debt based.
Bryan Pepperell is a Wellington City Councillor