Monday, July 6, 2020

FISCAL FOLLEY AT TOWN HALL


An extra $2.8 million came out of the City of Launceston council's coffers to finish work on Riverbend Park and a UTAS Stadium upgrade, council documents reveal.
Council planned to spend $8.45 million building the popular Riverbend Park, but the final amount spent was $10.4 million. [EXRTA COST = 6 CEO/GM salaries or 6 average Launceston houses .... always remembering that Launceston’s CEO is paid more than the Premier]

About $5.4 million was to be spent on resurfacing UTAS Stadium and developing a 22,000 square metre turf farm at Dilston, however the final cost was $6.2 million.
The budgets for the projects blew out by a combined total of $2.8 million


City of Launceston mayor Albert van Zetten said the extra spending had delivered the community "world class assets" it would benefit from for years to come.

"Riverbend Park is going to be a fantastic tourist attraction for our city and it's something we did want to get right," he said.

"It was 2015 when we did the estimates for it and by the time the work was done from 2018 onwards, the costs have obviously went higher and in addition to that there's been an extra basketball court and other work that's been done which has been added to the project." [unadulterated bovine dust]

Councillor van Zetten said the UTAS Stadium overspend was needed to "get the job done".

"What they found when they did the work was that some of the base wasn't quite suitable so they had to do more work," he said.

"We had to get it right and that's why we had to spend a bit more than originally budgeted." [AND anyway, the ratepayers will pay wont thy at about $7.00 PLUS for each and every property where rates are paid]

The stadium and park made Launceston a better place to live, Cr van Zetten said. [For whom??]

"We are a good city but we want to be a great regional city and we need a Riverbend Park, we need a UTAS Stadium, we need to have world class sporting events here so we do need to have these facilities and we need to keep them to a fantastic standard otherwise we won't get the AFL games and we won't get Big Bash and we won't even get the World Cup soccer here," he said.

Cr Van Zetten said there were lessons that could be learned from the budgeting process the stadium and park projects went through. [SURE THERE ARE!!! AND BIG ONES!]

"When we budgeted and did the costing for Riverbend Park we should have added 20 per cent in the beginning but we didn't know how long it was going to take us to do the job and we didn't know what extra projects were required as well," he said. [ONLY if you believe in budget elasticity ... 5% would be excessive if the budget advice was expert advice!!]

"I think it's always probably prudent for council in future to have a contingency in there of around 20 per cent and then you would find we'd come within budget. It's something we will no doubt continue to look at in the future." [ONLY if you take financial advice from the fairies at th

e bottom of the garden ... and only then if you believe that they are there!]

Council's chief financial officer Paul Gimpl said both projects exceeded their budgets by less than the 20 per cent contingency amount "generally accepted" for projects which were big and complex. [TOTAL RUBBISH if you are employing EXPERTS to do the financial planning and EXPERTS to do the planning]

 
COMMENT .... RATEPAYERS deserve and need better than this tosh delivered as it is in a recession! They say ‘pay peanuts and you buy monkeys’ but in Launceston ratepayers pay TOP MONEY and still they are dealt up with this nonsense. On top of this in the last 3 or 4 years budget overruns are standard practice and nobody is penalised EXCEPT the ratepayers. When will it ever end and when will ‘management’ start managing, meeting KPIs and STOP GOVERNING while the elected 12 are asleep on the job?

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