On the Council website this is one of the automated banners, proclaiming a “financial performance better than planned.” Er, yeah? Did we not point out in the post of 7 October that there is an increased overall loss from $8 million to $13 million, while debt as stated at the end of note 24 on page 111 has increased from $140 million to $160 million?
Yes, the operating deficit was $3,042,000 against a planned $3,531,000 — but the year before the deficit was $1,450,000; more than doubling that is nothing to be proud of, Mr Dougherty!
Added to the operating loss was a loss on “revaluation of financial derivatives” of $9,693,000. According to Investopedia, a derivative is:
“a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.”
So what has Dougherty been doing gambling on the derivatives market with obvious disastrous consequences? What else is yet to be revealed? Ratepayers would like answers; let’s hope the new Mayor and Councilors are going to get them from Dougherty.