In a two minute decision, one of the quickest decisions of this triennium, council voted unanimously to reject this funding proposal today, in a vote moved by Councilor John Howson and seconded by Councilor Jackie Elliott.
(Repost of comment on the previous post.)
The fact that members of the council even considered such a plan show that by and large the council is not fit for purpose.
The turnaround obviously came from the fact that they realised that they would all be out of a job come the next elections if it went through. But lets not forget that those who introduced the folly are still there and waiting!
Should not forget the vilification Community Board members Guy Burns and Bernie Randall suffered at the hands of the Mayor (Gurunathan) and a senior Councillor (M Scott) when it was suggested this proposal was crazy.
Any financial advisor would tell you borrowing to invest is a definite no, no.
Took a comment from the Auditor General’s office that this was an ‘unusual’ proposal coupled to the possibility Councillors could be charged with reckless financial management for this crazy plan (borrow at 4.65%, plus broker fees 1% plus inflation 1.9% plus staff time requiring a sustainable long term return of over 10% on financial markets which in the current climate is inconceivable) to be abandoned.
What’s more worrying is that Council staff had already earmarked potential monies from his fund for projects. Clearly a case of staff trying to push the borrowing envelope by other means.
Ratepayers should severely punish the current Councillors at the next election by voting them out for such reckless financial behaviour coupled to nasty behaviour towards other ratepayer community representatives who dare to speak up.
So much for a OPEN TRANSPARENT AND ACCOUNTABLE Council!