I don’t understand how this happened.
From: Lee Vandervis
Date: Mon, 19 Sep 2011 21:38:13 +1200
To: Elizabeth Kerr
Subject: Re: ?????
I do not believe most Councillors understand what they have voted for in approving raising $170million worth of overdraft for DVL&DVML,- the stadium management/ownership organisations. In item #4 of the FS&D agenda of 5/9/11 approved today, the Councillors tried to save money by deferring the $6,359,000 Stadium maintenance fund for at least 5 years. [safely 2 elections away] In the very following item #5 of the same agenda they today approved giving DVL&DVML Stadium managers an unbelievable overdraft of $170,000,000 which included the $6,359,000 maintenance fund they had just voted to defer!!
Worse, this new $170m ‘increase in capital’ [=overdraft facility], included some rather specific numbers suggesting that if not spent already, it very soon will be;
- $29,089,000 to guarantee and pay interest on the so-called private sector funding which is expected to dribble in over the next ten years,
- $105,061,000 Stadium construction cost
- $6,359,000 maintenance fund [which Councillors had just voted to defer]
- $4,450,000 additional items [unspecified but presumably some of the ‘extras’ for the Stadium approved already this year]
- $3,600,000 Academy of Sport [new building on Stadium north wall]
- $1,400,000 relocatable Seats [more Stadium ‘extras’]
- $500,000 Additional Items [unspecified], leaving a balance of
- $20,040,500 which after I probed for an answer was described as ‘contingency’!
I stridently pointed out the obvious $6,395,000 double dip of the maintenance fund, and the insanely high $20million ‘contingency’ figure, and how interest on ‘private funding’ was costing us, but few Councillors seemed to understand.
The justification from Cr. Brown for giving the Stadium managers this obscene new overdraft, was that “Stadium warrantees means there is no need for a maintenance fund, and that because Stadium managers are required to spend within the limits of their Statement of Intent means there is no risk to Council whatsoever”. !
And then 11 out of 15 Councillors voted for it!!
That is how it happened.