The Nelson City council keep claiming that no decision has been made about hosting the world rugby cup. Yeah right! Does this council really think that the public are gullible enough to swallow that dead rat.
Well it has now been officially confirmed, that those council claims are not worth the paper they are written on, and that this council couldnt lie straight in bed if it tried.
Since when does the government announce in its budget, the hand-out of $1.5 million dollars worth of taxpayer funds, to something that does not exist.
So when the government prominently announces, that very $1.5 million dollar handout to the council, it clearly gives the lie to those claims that no world cup decision will be made until after consultation with the public.
The strings attached to that government largesse confirm the fallacy and deception of council claims.
Those caveats restrain the application of that handout, to spending only for hosting the world cup, and confirmation of the application of that money, strictly to world cup hosting, must be authenticated by the world cup ministers tick of approval.
If this is not a concrete case of outright predetermination then nothing is.
28 May 2009
27 May 2009
LTTCP: IDIOTIC MATHS
The brazenness of the Nelson City council's deceit, shown in the rate increase information in its plans and estimates, is breathtaking in its audacity.
Depending on which set of figures you use from the estimates, as they are all different, but they all similarly declare a near doubling of rates over the ten year period of the plan.
Consequently there is a fundamental underlying double digit annual rate increase, underpinning this LTCCP.
For example the estimates declare rate increases in the order of 12.65%, 13.29%, and 11.06% as inherent to this plan.
But even those figures do not tell the whole truth, because even at those stated levels, the total of all ten individual rate increases does not add up to anywhere near the ten year total rate increase.
All ten annual rate increases only add up to around 65% of the ten year total increase.
If the rate increases after massage by the mortgage holiday are used, the discrepancy is even more startling.
The total of those individual rate increases only adds up to just on 50% of the ten year total rate increase.
This proposed mortgage holiday is simply a subterfuge to hide a marked increase in spending, a trebling of debt, a trebling of interest payments and a doubling of rates.
The severe reality of those numbers is being hidden by this sleight of hand. Council are obscuring these untenable rate increases by using a barrage of different figures that dont appear anywhere in the plans or estimates.
It is councils responsibility to tranparently inform ratepayers, not to deceive them by pulling the wool over their eyes.
Depending on which set of figures you use from the estimates, as they are all different, but they all similarly declare a near doubling of rates over the ten year period of the plan.
Consequently there is a fundamental underlying double digit annual rate increase, underpinning this LTCCP.
For example the estimates declare rate increases in the order of 12.65%, 13.29%, and 11.06% as inherent to this plan.
But even those figures do not tell the whole truth, because even at those stated levels, the total of all ten individual rate increases does not add up to anywhere near the ten year total rate increase.
All ten annual rate increases only add up to around 65% of the ten year total increase.
If the rate increases after massage by the mortgage holiday are used, the discrepancy is even more startling.
The total of those individual rate increases only adds up to just on 50% of the ten year total rate increase.
This proposed mortgage holiday is simply a subterfuge to hide a marked increase in spending, a trebling of debt, a trebling of interest payments and a doubling of rates.
The severe reality of those numbers is being hidden by this sleight of hand. Council are obscuring these untenable rate increases by using a barrage of different figures that dont appear anywhere in the plans or estimates.
It is councils responsibility to tranparently inform ratepayers, not to deceive them by pulling the wool over their eyes.
26 May 2009
PAC: CONTEMPTUOUS
The Nelson City council are treating the public like fools with their ongoing claims that the performing arts centre will bring economic salvation to the region.
Recently repeated claims of economic nirvana, treat the public with contempt, and getting that huge old breeding sow of a porky, to take off and get airborne, flies in the face of both aerodynamics and gravity, and is an outright deceit.
Council has never quantified that economic flight of fantasy. It has never provided any figures or financial projections to justify their ridiculous claims of huge economic benefit.
Council has not provided any such justification because it knows, that those claims are simply not true.
Council is budgeting $1.1 million dollars per annum, for operating expenses, while making no provision at all for any counter balancing operating income or revenue.
That being the case then it is clear that this project is being proceeded with on the basis of entirely illiterate, artistic, and economic nonsense and wishfull fantasy, rather than any detailed professional analysis of cold hard reality.
If this massively expensive project is not based on any hard economic reality, then it can only be regarded as an entirely reckless application of public funds.
If the council do not know what the financial consequences of this white elephant are, then how can they fulfill their legislative obligations to notify the pubilic of those consequences.
The ancient mariner would be proud to wear this particular albatross around his neck.
Recently repeated claims of economic nirvana, treat the public with contempt, and getting that huge old breeding sow of a porky, to take off and get airborne, flies in the face of both aerodynamics and gravity, and is an outright deceit.
Council has never quantified that economic flight of fantasy. It has never provided any figures or financial projections to justify their ridiculous claims of huge economic benefit.
Council has not provided any such justification because it knows, that those claims are simply not true.
Council is budgeting $1.1 million dollars per annum, for operating expenses, while making no provision at all for any counter balancing operating income or revenue.
That being the case then it is clear that this project is being proceeded with on the basis of entirely illiterate, artistic, and economic nonsense and wishfull fantasy, rather than any detailed professional analysis of cold hard reality.
If this massively expensive project is not based on any hard economic reality, then it can only be regarded as an entirely reckless application of public funds.
If the council do not know what the financial consequences of this white elephant are, then how can they fulfill their legislative obligations to notify the pubilic of those consequences.
The ancient mariner would be proud to wear this particular albatross around his neck.
25 May 2009
OPERA: OUT OF CONTROL
Clearly, the Nelson City council opera in the dark, is still being kept firmly in the fiscal dark, and financial planning for that event, is an entrepreneurial deception from start to finish.
Council has been asked two years in a row what budgetary controls it intends imposing, to bring this Beckham look alike event, under proper control.
There has still been no answer given to that question, and it appears that council still does not intend reining in, this out of control beast, and with sponsorship pulling out, there is a distinct possibility that the organisers will go for broke, on one last extravaganza, before the plug is pulled.
It is therefore timely to once again demand an answer to the question of what budgetary controls council intends imposing, before this sponsorship vacuum is just filled by an even greater loss and imposition on ratepayers pockets.
With operational costs of around a quarter of a million dollars plus considerable staff costs, weighed against an operational income of only around eighty thousand dollars, this event is a business, budgetary, entrepreneurial, and promotional farce.
No wonder private promoters wont touch it, and if the council is foolish enough to run such a financial cot case of an event, then the private promoters will just sit back and laugh and cream off all the agency, finders and other fees instead.
This event must be cut and tailored according to its cloth. A proper budget must be set, and the organisers must be handcuffed to, and controlled within that budget.
If that is not possible, then this event must be ditched, and consigned to history.
Council has been asked two years in a row what budgetary controls it intends imposing, to bring this Beckham look alike event, under proper control.
There has still been no answer given to that question, and it appears that council still does not intend reining in, this out of control beast, and with sponsorship pulling out, there is a distinct possibility that the organisers will go for broke, on one last extravaganza, before the plug is pulled.
It is therefore timely to once again demand an answer to the question of what budgetary controls council intends imposing, before this sponsorship vacuum is just filled by an even greater loss and imposition on ratepayers pockets.
With operational costs of around a quarter of a million dollars plus considerable staff costs, weighed against an operational income of only around eighty thousand dollars, this event is a business, budgetary, entrepreneurial, and promotional farce.
No wonder private promoters wont touch it, and if the council is foolish enough to run such a financial cot case of an event, then the private promoters will just sit back and laugh and cream off all the agency, finders and other fees instead.
This event must be cut and tailored according to its cloth. A proper budget must be set, and the organisers must be handcuffed to, and controlled within that budget.
If that is not possible, then this event must be ditched, and consigned to history.
24 May 2009
LTCCP: BLACKMAIL
The Nelson City council is resorting to blackmail in their attempt to defend the indefensible, of this mortgage holiday insanity.
In response to growing criticism, council are now claiming that not taking that holiday to hell, will require council to rip many millions of dollars worth of capital expenditure [capex] out of the LTCCP, which seriously hurts the local economy.
That is a ship load of absolute bull chips, which comprehensively demonstrates this council's abysmal ignorance of proper capital planning.
This holiday from hell, is in fact, the sleight of hand that is required, to hide a massive increase in capex and rates, rather than to avoid any decrease in capex.
If that mortgage holiday did not exist, the huge and unacceptable, underlying rate increases, underpinning that increased capex would be out in the open and ratepayers would be howling from the roof tops in protest.
The real problem underlying this whole issue, is that this "hands up" council knows that it is only a one term council, and it is therefore attempting to lock its vested interest spending agenda into place, before being given the heave ho.
Council is cramming ten years worth of capital expenditure into three years, and then contractually locking that expenditure into place, to kneecap any future ability to alter that spending agenda or massage it into any semblance of prudence.
The claim that millions need to be ripped out of this plan is absolute hogswash and rubbish.
If that planned capex is introduced evenly, and spread out consistently over the entire ten year period of the plan, then there are no unacceptable rate increases to hide, and the need for a mortgage holiday disappears.
Instead of massively cramming everything into the beginning of the plan, any responsible captain of a ship of state, would be steering a prudent, steady as she goes course, rather than an entirely distorted and erratic course, which gives the impression that whoever is at the helm is intoxicated.
In response to growing criticism, council are now claiming that not taking that holiday to hell, will require council to rip many millions of dollars worth of capital expenditure [capex] out of the LTCCP, which seriously hurts the local economy.
That is a ship load of absolute bull chips, which comprehensively demonstrates this council's abysmal ignorance of proper capital planning.
This holiday from hell, is in fact, the sleight of hand that is required, to hide a massive increase in capex and rates, rather than to avoid any decrease in capex.
If that mortgage holiday did not exist, the huge and unacceptable, underlying rate increases, underpinning that increased capex would be out in the open and ratepayers would be howling from the roof tops in protest.
The real problem underlying this whole issue, is that this "hands up" council knows that it is only a one term council, and it is therefore attempting to lock its vested interest spending agenda into place, before being given the heave ho.
Council is cramming ten years worth of capital expenditure into three years, and then contractually locking that expenditure into place, to kneecap any future ability to alter that spending agenda or massage it into any semblance of prudence.
The claim that millions need to be ripped out of this plan is absolute hogswash and rubbish.
If that planned capex is introduced evenly, and spread out consistently over the entire ten year period of the plan, then there are no unacceptable rate increases to hide, and the need for a mortgage holiday disappears.
Instead of massively cramming everything into the beginning of the plan, any responsible captain of a ship of state, would be steering a prudent, steady as she goes course, rather than an entirely distorted and erratic course, which gives the impression that whoever is at the helm is intoxicated.
20 May 2009
LTCCP: AUDIT PORKIES
The Nelson City council is mounting such a desperate rearguard defence of its imprudent debt and mortgage holiday policies, that it has got so many squadrons of flying porkies airborne, that the sky is pink with them; and leading that airborne armada is the chief porky that claims the auditors have given approval to those ruinous policies.
Yes the auditors have audited the LTCCP, but that audit is not a normal audit. It is a special type of audit examining assurance engagements, which the auditors have most significantly plastered two major disclaimers all over.
Those two audit disclaimers explicitly state,
For a lay Council to so radically reject and depart from such universally established economic thinking, on debt and mortgage holidays, without taking any appropriate economic advice; is by definition grossly imprudent and negligent.
Further if council really think, that their radical rejection of accepted economic thinking is actually approved by the auditors, then they need to sack them and find themselves some new auditors who understand the definition of prudent.
Yes the auditors have audited the LTCCP, but that audit is not a normal audit. It is a special type of audit examining assurance engagements, which the auditors have most significantly plastered two major disclaimers all over.
Those two audit disclaimers explicitly state,
"It is not our responsibility to express an opinion on the merits of any policy content within [the LTCCP]."Thus for council to claim that some form of inherent acceptance or approval of those debt and mortgage holiday polices, is built into or intrinisic to that audit, is just palpable nonsense.
"We do not guarantee complete accuracy of the information in [the LTCCP]."
For a lay Council to so radically reject and depart from such universally established economic thinking, on debt and mortgage holidays, without taking any appropriate economic advice; is by definition grossly imprudent and negligent.
Further if council really think, that their radical rejection of accepted economic thinking is actually approved by the auditors, then they need to sack them and find themselves some new auditors who understand the definition of prudent.
19 May 2009
LTCCP: PURE PORKIES
It has become crystal clear that one hand of the Nelson City council hasn't got a clue what it's other hand is doing.
Councils left hand is abusing and accusing every man and his dog, claiming that they have provided the requested data, about the financial consequences of taking their ridiculously dangerous mortgage holiday of last resort.
But another day on, and this very information has still not been provided. Instead council's right hand has categoricaly denied that any such information exists and, nor has any been researched, prepared, released or provided to anyone inside council, let alone anyone outside council.
Yesterday council released another statement saying that,
It is now patently obvious that no such data exists, and if that is the case then clearly council had, and still has, absolutely no understanding or appreciation of the ruinous financial consequences and implications of this catastrophic holiday from hell or this ruinous LTTCP.
At the very least, that ignorance is disastrously imprudent, let alone in breach of the legislative requirements.
Council are putting up smoke screens everywhere and their wide spread abuse of all and sundry, is a telling symptom and indication, that they have neglected, and are in default of their required fidicuary duties and responsibilities.
This council must now either ditch this negligent and stunningly irresponsible and totally unnecessary, $112 million dollar disaster, or resign.
Councils left hand is abusing and accusing every man and his dog, claiming that they have provided the requested data, about the financial consequences of taking their ridiculously dangerous mortgage holiday of last resort.
But another day on, and this very information has still not been provided. Instead council's right hand has categoricaly denied that any such information exists and, nor has any been researched, prepared, released or provided to anyone inside council, let alone anyone outside council.
Yesterday council released another statement saying that,
"[Council] have never provided the information [that has been] asked for as it would be a major exercise as it was continually changing."So who is telling the flying porkies in this saga, council's left hand or their right hand.
It is now patently obvious that no such data exists, and if that is the case then clearly council had, and still has, absolutely no understanding or appreciation of the ruinous financial consequences and implications of this catastrophic holiday from hell or this ruinous LTTCP.
At the very least, that ignorance is disastrously imprudent, let alone in breach of the legislative requirements.
Council are putting up smoke screens everywhere and their wide spread abuse of all and sundry, is a telling symptom and indication, that they have neglected, and are in default of their required fidicuary duties and responsibilities.
This council must now either ditch this negligent and stunningly irresponsible and totally unnecessary, $112 million dollar disaster, or resign.
18 May 2009
LTTCP: DEVILS RANSOM
Wow, the Nelson City council are so desperate to keep the financial consequences of their idiotic holiday to hell secret, they are now resorting to name calling and plain old abuse.
In reply to a simple and legitimate information request, as to what the costs and financial consequences of their proposed mortgage holiday were, council quite arrogantly and improperly stated,
Even further they point blank refuse to do so. But why. Why the secrecy? What is going on? What is so difficult about providing such a simple piece of information?
Well the cat is now well and truly out of the bag. The Nelson Mail has just provided that very piece of data that the city council has been so deperately trying to hide.
In its page 3 article of the 18th of May, the Nelson Mail unequivocally states that,
That is a stunning revelation of reckless financial adventurism, for which there is no purpose whatsoever, and for which there can be no justification whatsoever.
So the real price of this pact with the devil has been revealed. The cost of the devils ransom is quite simply $112 million dollars.
No wonder council was trying to hide that information.
In reply to a simple and legitimate information request, as to what the costs and financial consequences of their proposed mortgage holiday were, council quite arrogantly and improperly stated,
"It would be a huge exercise to work this [information] out, and [they] do not have the time. It would mean reworking the whole estimates".To this very moment council have still not provided that information, which is a requisite of the LTCCP.
Even further they point blank refuse to do so. But why. Why the secrecy? What is going on? What is so difficult about providing such a simple piece of information?
Well the cat is now well and truly out of the bag. The Nelson Mail has just provided that very piece of data that the city council has been so deperately trying to hide.
In its page 3 article of the 18th of May, the Nelson Mail unequivocally states that,
"Withholding repayments will increase debt, currently at $57 million, to a maximum in 2013-14, of $169 million.So there it is, openly stated, in black and white, that this totally unwarranted and ridiculous mortgage holiday, is going to cost ratepayers a staggering $112 million dollars for that stupid piece of unnecessary financial slieght of hand.
That is a stunning revelation of reckless financial adventurism, for which there is no purpose whatsoever, and for which there can be no justification whatsoever.
So the real price of this pact with the devil has been revealed. The cost of the devils ransom is quite simply $112 million dollars.
No wonder council was trying to hide that information.
17 May 2009
LTCCP: DEVIL'S PACT
So why is the Nelson City council signing up with the devil for a mortgage holiday to hell, and is it a one way ticket, or a return journey.
If every economist known, accepts that these debt holidays are such toxic financial instruments of last resort, and all so unanimously recommend against them, then why is this council, against all sensible advice, so foolishly adopting this highly imprudent course of action.
It is obvious that something is driving this unwise and ill-considered action. What is going on. Is council going broke or what?
One reason for this mortgage holiday is that council are trying to disguise the true level of rates increase, that is about to be imposed on ratepayers. The real level of rates increase that this LTCCP is hiding is quite astonishing.
Council admits that the actual increase for the general rate AFTER mortgage holiday manipulation, is 12.65%, and if that is the case, then what was it BEFORE that manipulation, probably closer to, if not more than a whopping 20%.
As an example water rates were meant to increase significantly this year, because the previous smoothing loan had expired, however after mortgage holiday manipulation water rate increases were reduced to minus 4.84%.
If this is the size of the manipulation that is being wrought by this mortgage holiday, then a similar size shift in the increase to the general rate, would put that underlying increase to the general rate into astronomical orbit.
The actual underlying rate increases hidden in this LTCCP, are probably somewhere in the vicinity of 20% or more, but those figures are being kept secret from ratepayers.
These sorts of costs are the actual underlying implications and consequences for ratepayers, and such profligate spending has to catch up with the ratepayer at some point. The credit card has to be paid for sooner or later.
When the devil comes calling, to demand payment for this pact, it will literally cost ratepayers a devils ransom.
If every economist known, accepts that these debt holidays are such toxic financial instruments of last resort, and all so unanimously recommend against them, then why is this council, against all sensible advice, so foolishly adopting this highly imprudent course of action.
It is obvious that something is driving this unwise and ill-considered action. What is going on. Is council going broke or what?
One reason for this mortgage holiday is that council are trying to disguise the true level of rates increase, that is about to be imposed on ratepayers. The real level of rates increase that this LTCCP is hiding is quite astonishing.
Council admits that the actual increase for the general rate AFTER mortgage holiday manipulation, is 12.65%, and if that is the case, then what was it BEFORE that manipulation, probably closer to, if not more than a whopping 20%.
As an example water rates were meant to increase significantly this year, because the previous smoothing loan had expired, however after mortgage holiday manipulation water rate increases were reduced to minus 4.84%.
If this is the size of the manipulation that is being wrought by this mortgage holiday, then a similar size shift in the increase to the general rate, would put that underlying increase to the general rate into astronomical orbit.
The actual underlying rate increases hidden in this LTCCP, are probably somewhere in the vicinity of 20% or more, but those figures are being kept secret from ratepayers.
These sorts of costs are the actual underlying implications and consequences for ratepayers, and such profligate spending has to catch up with the ratepayer at some point. The credit card has to be paid for sooner or later.
When the devil comes calling, to demand payment for this pact, it will literally cost ratepayers a devils ransom.
14 May 2009
OPERA: ARROGANCE
The Nelson City council demonstrates breathtaking arrogance in castigating its own ratepayers, for demanding that the proper financial controls and disciplines, required by the Public Finance Act, be applied to council's out of control, opera and arts and events spending.
Councils extremely churlish position that ratepayers are not able to understand the value of this arts and events spending, instead demonstrates its own grossly ignorant lack of understanding of the proper governance of public funds.
The public understand only too well the value of things, such as those necessities, like clean drinking water, and sanitary waste disposal, etc; and if push came to shove, these less essential and discretionary arts activities, come a very distant second in the funding stakes.
If council applied the same funding criteria to water and sewage as it does to opera then there would be a 300% discount applied to cost, and at that rate council would be paying us to take those services or would be putting rates refund cheques in the mail. Yeah right.
Arts and events spending does not have some patronised privileged position and like all council services, is required to be funded on a self supporting basis, and must also stand in the queue, along with every body else.
It is blatantly obvious that council events funding is being applied whimsically and disproportionately, to satisfy widespread vested interests within council, and to such an extent, that it is at best, political patronage, or at worst a widespread conflict of interest.
Councils extremely churlish position that ratepayers are not able to understand the value of this arts and events spending, instead demonstrates its own grossly ignorant lack of understanding of the proper governance of public funds.
The public understand only too well the value of things, such as those necessities, like clean drinking water, and sanitary waste disposal, etc; and if push came to shove, these less essential and discretionary arts activities, come a very distant second in the funding stakes.
If council applied the same funding criteria to water and sewage as it does to opera then there would be a 300% discount applied to cost, and at that rate council would be paying us to take those services or would be putting rates refund cheques in the mail. Yeah right.
Arts and events spending does not have some patronised privileged position and like all council services, is required to be funded on a self supporting basis, and must also stand in the queue, along with every body else.
It is blatantly obvious that council events funding is being applied whimsically and disproportionately, to satisfy widespread vested interests within council, and to such an extent, that it is at best, political patronage, or at worst a widespread conflict of interest.
13 May 2009
LTCCP: NEGLIGENT?
While the Nelson City council's LTCCP is an outright financial disaster for the city, it now appears that it is a negligent and or incompetent disaster to boot.
The legislatively required and fundamental purpose of an LTCCP, is to notify and inform the ratepayers of the detailed financial implications and consequences of the councils intentions.
While Council is proposing to triple debt, triple interest payments, double the rate take, and geometrically increase the rates ratio burden to a massive 65%, it has just admitted that it has not commissioned, sought, taken, or received any advice as to the financial or economic implications and consequences of those highly imprudent intentions.
This staggering admission is an open acknowledgement that council has flagrantly ignored and abrogated its legislated fiscal obligations and responsibilities and that blatant ignoring of its fiduciary duties, whether by ommission or commission, can only be classified as negligent or incompetent or negligent incompetence.
If this council does not know, or want to know, or understand, the fraught consequences of its proposed actions and intends pushing on in the face of ignorance of those disastrous implications, then it must be sacked and removed from office, and a commissioner appointed in its place.
The very first action of that commissioner, must be to revoke this ruinous LTCCP and put a prudent financial plan in its place.
This LTCCP is a financial catastrophe, that must be stopped in its tracks.
The legislatively required and fundamental purpose of an LTCCP, is to notify and inform the ratepayers of the detailed financial implications and consequences of the councils intentions.
While Council is proposing to triple debt, triple interest payments, double the rate take, and geometrically increase the rates ratio burden to a massive 65%, it has just admitted that it has not commissioned, sought, taken, or received any advice as to the financial or economic implications and consequences of those highly imprudent intentions.
This staggering admission is an open acknowledgement that council has flagrantly ignored and abrogated its legislated fiscal obligations and responsibilities and that blatant ignoring of its fiduciary duties, whether by ommission or commission, can only be classified as negligent or incompetent or negligent incompetence.
If this council does not know, or want to know, or understand, the fraught consequences of its proposed actions and intends pushing on in the face of ignorance of those disastrous implications, then it must be sacked and removed from office, and a commissioner appointed in its place.
The very first action of that commissioner, must be to revoke this ruinous LTCCP and put a prudent financial plan in its place.
This LTCCP is a financial catastrophe, that must be stopped in its tracks.
12 May 2009
OPERA: TAP DANCING
Wow, the Nelson City council is so desperate to hide the true losses of the Opera in the Dark, that it is going to extreme lengths to deceive the public.
Council is treating the public with such contempt that it is prepared to grossly fudge the figures, in its attempts to turn that financial flying pigs ear of an event into some form of economic silk lined public purse.
Those figures are outright bulldust. Council are claiming a $16,000 loss, but that figure is nonsensical flying hogs wash. That loss does not declare or take into account the costs of council staff time, that was supposedly donated to the event.
That statement alone is an outright deception. Staff costs are a direct and real cost to the ratepayer, therefore it must be accounted for as a very real expense to the event and a very real expense to the ratepayer.
As for cross crediting underspends in other budgets as some form of loss prevention income, is the most creative accounting ever seen, and is just barefaced tap dancing. That is still a direct cost and loss, no matter which pocket it comes out of.
This event has so far, declared expenditure of $233,000 plus staff time, with income of just $78,000, and that is clearly an operating loss of $155,000 plus staff time.
Even with sponsorship and other grants of $89,000 included, to arrive at the overall balance for the event, there is still a $66,000, plus staff time, loss to be accounted for.
To claim those figures as only a $16,000 loss is simply contemptuous of the public, and obviously the true losses of this charade have yet to be revealed.
Council is treating the public with such contempt that it is prepared to grossly fudge the figures, in its attempts to turn that financial flying pigs ear of an event into some form of economic silk lined public purse.
Those figures are outright bulldust. Council are claiming a $16,000 loss, but that figure is nonsensical flying hogs wash. That loss does not declare or take into account the costs of council staff time, that was supposedly donated to the event.
That statement alone is an outright deception. Staff costs are a direct and real cost to the ratepayer, therefore it must be accounted for as a very real expense to the event and a very real expense to the ratepayer.
As for cross crediting underspends in other budgets as some form of loss prevention income, is the most creative accounting ever seen, and is just barefaced tap dancing. That is still a direct cost and loss, no matter which pocket it comes out of.
This event has so far, declared expenditure of $233,000 plus staff time, with income of just $78,000, and that is clearly an operating loss of $155,000 plus staff time.
Even with sponsorship and other grants of $89,000 included, to arrive at the overall balance for the event, there is still a $66,000, plus staff time, loss to be accounted for.
To claim those figures as only a $16,000 loss is simply contemptuous of the public, and obviously the true losses of this charade have yet to be revealed.
11 May 2009
SEWAGE: FOR BRAINS
The Nelson City council have decided to go ahead with the duplication of the Bells Island sewage line, despite submissions during public consultation, raising extremely serious technical concerns about the fundamentally defective thinking underpinning parts of that project.
Those concerns were, the deeply flawed risk analysis, [18 April 09], and the insanity of spending $54 million dollars upgrading the sewage plant, to immediately thereafter, consider shutting the plant down and relocating inland, [20 April 09].
No wonder so many people think that this council tops its cranial cavity up with the raw product from this plant. However the lunacy of making such a crazy decision is so impossibly stupid that it must be regarded as highly improbable, even for this council.
Surely they must have given full and proper consideration to those crucially significant issues and adopted appropriate measures to correct and repair that planning. Surely this is just a failure to inform the public of those changes. Surely this is just a notification and information failure.
Anything else is so blatantly reckless, that it beggars belief.
Those concerns were, the deeply flawed risk analysis, [18 April 09], and the insanity of spending $54 million dollars upgrading the sewage plant, to immediately thereafter, consider shutting the plant down and relocating inland, [20 April 09].
No wonder so many people think that this council tops its cranial cavity up with the raw product from this plant. However the lunacy of making such a crazy decision is so impossibly stupid that it must be regarded as highly improbable, even for this council.
Surely they must have given full and proper consideration to those crucially significant issues and adopted appropriate measures to correct and repair that planning. Surely this is just a failure to inform the public of those changes. Surely this is just a notification and information failure.
Anything else is so blatantly reckless, that it beggars belief.
10 May 2009
PAC: DONE DEAL
The Nelson City council is claiming in thier propaganda rag, Live Nelson, that no decision has been made on the PAC, and that there will be full and robust consultation.
What an absolute load of bull chips. The pigs are all refuelled, and lined up ready for flight, with councils actions speaking far louder than their words.
Clearly this council has not got a clue about what notification and consultation even mean, and that is at the very root of this problem.
Notification and consultation is meant to be about whether or not there should even be a PAC, in the first place. Consultation is not just about what colour to paint the toilet seats.
The ratepayers are meant to be canvassed on whether or not Nelson needs or even wants, or can afford a PAC, and that consultation has never happened in the life of this project.
Council are just ramming that presumption down the public's throat as a done deal, that the community wants, needs and can afford this expensive Taj Mahal.
That decision which has yet to be made, is a decision of wishes, versus need and affordability, with the LTCCP planning and decision making process being, fundamentally an economic and financial decision making process.
Essentially the legislation requires any notification and consultation and the resulting decision, to focus on the costs and the economic effect on affordability for ratepayers.
In this latest Live Nelson attempt to avoid these irritating matters, council openly admit that they have not got a clue as to what the costs are, let alone how many funding partners there will be to divide the costs between.
Therefore it is totally impossible for council to meet the legislative requirements of notifying and spelling out, what the financial effects are on rates and the ratepayers.
Clearly then, it is equally as impossible for ratepayers to make any informed decision on the affordability of this project, let alone for council to make any claim of affordability.
Obviously the inclusion of this project in the LTCCP is wholly improper and extremely premature, and until council can provide the legislatively required detail and specifics of this project, then any attempt to try and force it through so prematurely and without the legislatively required information, is an outright consultation sham and a financial scam to boot.
This farce is either a knowing rort or ignorant mismanagement of the worst order, choose your weapon. Either way, Live Nelson's own allegations of mismanagement are whole heartedly endorsed and agreed with.
What an absolute load of bull chips. The pigs are all refuelled, and lined up ready for flight, with councils actions speaking far louder than their words.
Clearly this council has not got a clue about what notification and consultation even mean, and that is at the very root of this problem.
Notification and consultation is meant to be about whether or not there should even be a PAC, in the first place. Consultation is not just about what colour to paint the toilet seats.
The ratepayers are meant to be canvassed on whether or not Nelson needs or even wants, or can afford a PAC, and that consultation has never happened in the life of this project.
Council are just ramming that presumption down the public's throat as a done deal, that the community wants, needs and can afford this expensive Taj Mahal.
That decision which has yet to be made, is a decision of wishes, versus need and affordability, with the LTCCP planning and decision making process being, fundamentally an economic and financial decision making process.
Essentially the legislation requires any notification and consultation and the resulting decision, to focus on the costs and the economic effect on affordability for ratepayers.
In this latest Live Nelson attempt to avoid these irritating matters, council openly admit that they have not got a clue as to what the costs are, let alone how many funding partners there will be to divide the costs between.
Therefore it is totally impossible for council to meet the legislative requirements of notifying and spelling out, what the financial effects are on rates and the ratepayers.
Clearly then, it is equally as impossible for ratepayers to make any informed decision on the affordability of this project, let alone for council to make any claim of affordability.
Obviously the inclusion of this project in the LTCCP is wholly improper and extremely premature, and until council can provide the legislatively required detail and specifics of this project, then any attempt to try and force it through so prematurely and without the legislatively required information, is an outright consultation sham and a financial scam to boot.
This farce is either a knowing rort or ignorant mismanagement of the worst order, choose your weapon. Either way, Live Nelson's own allegations of mismanagement are whole heartedly endorsed and agreed with.
07 May 2009
LTCCP: THEFT BY FORCE
The Nelson City council's proposed LTCCP is an abuse of statutory power tantamount to theft by force.
The courts have ruled that these plans of council are "formal statements of intent", and as such they are clearly the formal process used to statutorily justify and authorise, the exercise of the legislative power, to levy money on the ratepaying subjects of the state.
Those plans are meant to be a line by line bookbuilding process that transparently notifies the full, cent by cent details, of the rating implications of any imposition that the plan will enable the council to take by statutory force.
This LTCCP does not even pretend to go there. Quite simply it is a sham and a scam. For example council freely admit, in that very plan, that it hasn't got a clue what the cost of the performing arts centre will be, and yet the plan intends reaching into ratepayers pockets and taking more than thirty million dollars by the draconian force of state, and yet it doesn't even know how much it will actually cost or what the full financial implications are for ratepayers.
How does the ratepayer know whether he is being overcharged or shortchanged. If that project costs less than that guesstimate plucked from god knows where, will the council refund that overcharged money? Will there be a cheque in the mail? Yeah right!
At the very least this is an abuse of legislative power, and at worst is theft by force, and might even be fraudulent to boot.
The courts have ruled that these plans of council are "formal statements of intent", and as such they are clearly the formal process used to statutorily justify and authorise, the exercise of the legislative power, to levy money on the ratepaying subjects of the state.
Those plans are meant to be a line by line bookbuilding process that transparently notifies the full, cent by cent details, of the rating implications of any imposition that the plan will enable the council to take by statutory force.
This LTCCP does not even pretend to go there. Quite simply it is a sham and a scam. For example council freely admit, in that very plan, that it hasn't got a clue what the cost of the performing arts centre will be, and yet the plan intends reaching into ratepayers pockets and taking more than thirty million dollars by the draconian force of state, and yet it doesn't even know how much it will actually cost or what the full financial implications are for ratepayers.
How does the ratepayer know whether he is being overcharged or shortchanged. If that project costs less than that guesstimate plucked from god knows where, will the council refund that overcharged money? Will there be a cheque in the mail? Yeah right!
At the very least this is an abuse of legislative power, and at worst is theft by force, and might even be fraudulent to boot.
06 May 2009
PAC: WHITE ELEPHANT
The Nelson City council is so blindly pre-determined, to push on with that colossal white elephant of a performing arts centre, that it is convieniently turning Nelson's blind eye to the economic realities of this huge financial albatross in the making.
It is now obvious that every event that this council has promoted or run or sponsored or otherwise had anything to do with over recent times, has been an outright financial disaster, with each loss costing ratepayers considerable sums.
Even privately run promotions and events are also facing that very dilemma and are similarly going down the financial gurgler.
Those very statistics would seem to be the ominously loud and strident clamour of alarm bells ringing out a very pointed warning that Nelson does not have any capacity whatsoever to support this Alice in wonderland fantasy of a PAC.
Clearly the message that those alarm bells are warning us of, is that this region does not have any form of a suitable base to support these arty farty shows and events.
Nelson plainly does not have the economic base to support it, nor does it have a sufficiently large interest base, to make these events viable economic starters.
All polling to date indicates that the supporters of this excessive fantasy are very much a vocal minority, who it can now be seen, are obviously not prepared to put their money where their mouths are.
If there is no appetite or support, financial or otherwise, for these events, then it is eminently clear that the PAC's loudly trumpeted justification of economic salvation for Nelson is a sham and a totally flawed nonsense.
If this gargantuan white elephant proceeds in the face of this obvious lack of support, it will become another massive albatross around the neck of Nelson's long suffering ratepayers.
It is now obvious that every event that this council has promoted or run or sponsored or otherwise had anything to do with over recent times, has been an outright financial disaster, with each loss costing ratepayers considerable sums.
Even privately run promotions and events are also facing that very dilemma and are similarly going down the financial gurgler.
Those very statistics would seem to be the ominously loud and strident clamour of alarm bells ringing out a very pointed warning that Nelson does not have any capacity whatsoever to support this Alice in wonderland fantasy of a PAC.
Clearly the message that those alarm bells are warning us of, is that this region does not have any form of a suitable base to support these arty farty shows and events.
Nelson plainly does not have the economic base to support it, nor does it have a sufficiently large interest base, to make these events viable economic starters.
All polling to date indicates that the supporters of this excessive fantasy are very much a vocal minority, who it can now be seen, are obviously not prepared to put their money where their mouths are.
If there is no appetite or support, financial or otherwise, for these events, then it is eminently clear that the PAC's loudly trumpeted justification of economic salvation for Nelson is a sham and a totally flawed nonsense.
If this gargantuan white elephant proceeds in the face of this obvious lack of support, it will become another massive albatross around the neck of Nelson's long suffering ratepayers.
04 May 2009
LTCCP: DEBT CANCER
The Nelson City councils draft LTCCP intends tripling public debt levels from the present $57M, to a staggering $170M. That is an appallingly short sighted and dangerous proposition, which flies in the face of the world economic crisis.
National economies are going broke, international banks are going down the tubes, major public companies are turning their toes up, public insurers are going down the gurgler, huge mortgage institutions are down the drain.
Amazingly all of the worlds economic experts and commentators are without exception, laying the blame for these economic collapses at the door of living on continually increasing levels of debt.
So while everybody else in the world, is attempting to desperately reduce or claw back debt levels or restructure debt to remain within prudent debt covenants, this council is entirely blind to that cause and effect and intends flying in the face of that unanimously accepted cause of failure, by foolishly adopting the very course of action that has brought the rest of the world to its knees.
Not only are they intending to buy their groceries with this hugely expanded level of debt, they intend putting that debt on their credit card, and then, even worse still, they then intend to take a repayment holiday and suspend payments on that credit card.
Those actions are not only foolish but also downright dangerous and by adopting that course of action, it will be more than likely that this widespread aggressive cancer of debt, is being encouraged to claim yet another victim.
That growing list of failures, including Freddie Mac and Fannie Mae, can now look forward to having Nelson Mac or Nellie May, added to their ranks, and when that happens, the long suffering ratepayers will be forced to bail this council out of this festering, self inflicted and cancerous wound.
National economies are going broke, international banks are going down the tubes, major public companies are turning their toes up, public insurers are going down the gurgler, huge mortgage institutions are down the drain.
Amazingly all of the worlds economic experts and commentators are without exception, laying the blame for these economic collapses at the door of living on continually increasing levels of debt.
So while everybody else in the world, is attempting to desperately reduce or claw back debt levels or restructure debt to remain within prudent debt covenants, this council is entirely blind to that cause and effect and intends flying in the face of that unanimously accepted cause of failure, by foolishly adopting the very course of action that has brought the rest of the world to its knees.
Not only are they intending to buy their groceries with this hugely expanded level of debt, they intend putting that debt on their credit card, and then, even worse still, they then intend to take a repayment holiday and suspend payments on that credit card.
Those actions are not only foolish but also downright dangerous and by adopting that course of action, it will be more than likely that this widespread aggressive cancer of debt, is being encouraged to claim yet another victim.
That growing list of failures, including Freddie Mac and Fannie Mae, can now look forward to having Nelson Mac or Nellie May, added to their ranks, and when that happens, the long suffering ratepayers will be forced to bail this council out of this festering, self inflicted and cancerous wound.
03 May 2009
OPERA: IN THE DARK
So the Nelson City Council are now saying that it is expected that Opera in the Dark will once again run at a loss, but council cannot put a figure on that loss because details are still being reconciled as they only had estimates and no final figures and they were still waiting for some invoices.
Any body who believes that line of old cobblers will believe any thing, but worst of all it demonstrates that this council's financial culture is seriously defective, and most probably contrary to the Public Finance Act.
The excuses given for withholding that loss from the public, show that this council's financial practices are highly questionable and entirely deficient, and are so open ended, that there is clearly no budgetary control in place whatsoever.
The public finance act requires certainty in all public financial dealings, and it is normally mandatory for the committal of any public monies, for any goods and services, to have detailed controls in place, before any expenditure can be committed to.
Those controls usually require a written quote or at the very least multiple telephone quotes recorded and certified in an official register, and if those sort of controls were in place, council would clearly be able to provide accurate provisional figures, within days of the event taking place.
Council is admitting that it does not have that certainty and does not know exactly what costs it has committed itself to, and that is quite improper financial practice.
But even worse there is clearly no budgetary control or process in place, when council admits that it does not design or control the cost structure of the event, to the expected income.
While it may not be run as a for profit event, at the very least, it must be run and controlled as a break even event. It must be tailored to a budget and tightly controlled within that budget, and not undertaken as the financially open ended exercise that it is at present. To do otherwise is a reckless use of public funds.
Any body who believes that line of old cobblers will believe any thing, but worst of all it demonstrates that this council's financial culture is seriously defective, and most probably contrary to the Public Finance Act.
The excuses given for withholding that loss from the public, show that this council's financial practices are highly questionable and entirely deficient, and are so open ended, that there is clearly no budgetary control in place whatsoever.
The public finance act requires certainty in all public financial dealings, and it is normally mandatory for the committal of any public monies, for any goods and services, to have detailed controls in place, before any expenditure can be committed to.
Those controls usually require a written quote or at the very least multiple telephone quotes recorded and certified in an official register, and if those sort of controls were in place, council would clearly be able to provide accurate provisional figures, within days of the event taking place.
Council is admitting that it does not have that certainty and does not know exactly what costs it has committed itself to, and that is quite improper financial practice.
But even worse there is clearly no budgetary control or process in place, when council admits that it does not design or control the cost structure of the event, to the expected income.
While it may not be run as a for profit event, at the very least, it must be run and controlled as a break even event. It must be tailored to a budget and tightly controlled within that budget, and not undertaken as the financially open ended exercise that it is at present. To do otherwise is a reckless use of public funds.
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