Council demands more in return for funding

24 September 2013

Waipa District Council's Executive Committee has agreed to provide an additional $193,000 to the Waipa Community Facilities Trust.

But Councillors have warned Trustees that the money has only been provided in the expectation that patronage and revenues at the Trust Waikato Te Awamutu Events Centre and Cambridge pool will lift significantly under the Trust's management.

The Trust took over management of both facilities this month, temporarily closing them for assessment and maintenance. It found an urgent injection of funding was needed for the Trust to meet Council's expectations around increased revenue.

Trust chair Mervyn Gyde said the decision to approach Council for funding was not taken lightly.

The Trust's agreement with Council says the Trust must work to reduce its reliance on Council funding. We knew we would get a grilling; we expected that, Mr Gyde said.

The Council has made it crystal clear that they expect much more from these facilities than in the past. To meet those expectations, there are start-up costs we need to meet.

Council agreed to provide the funding under urgency so legal contracts could be signed. Chief executive Garry Dyet was asked to find savings in existing budgets or increase income from other sources to fund the money. Councillors had made it clear the $193,000 could not be sought from ratepayers.

Among other things, the money will be used for the installation of a controlled entry system at the Events Centre plus essential equipment including safety and cleaning gear for both pools.

Mr Gyde said the Trust was budgeting on a significant increase in patronage from both facilities.

We know there are major issues to work through in Cambridge around the future of the pool. In the meantime, we are aiming to build patronage in both facilities. We need to bring in as much money as we can so over time, both facilities are far less reliant on ratepayers.

Waipa Mayor Alan Livingston said he appreciated the fact that Trustees were upfront about what was needed as early as possible.

These Trustees are personally spending hours and hours of their own time - all unpaid - to improve the facilities in our community. Council has required a higher level of service in the contract and if it wants the community to have maximum benefit from facilities we've already got, it needs to support them over an initial funding hump, he said.

The facilities remain in Council ownership, so any money we invest stays here in the Waipa district.

Council also agreed to act as a guarantor to a bank loan for the Trust to a maximum amount of $270,000, noting any loan was expected to be paid down quickly. The money would be used for capital improvements.

ENDS

* Council's executive committee is made up of Mayor Alan Livingston, Service Delivery Committee chair Grahame Webber, Regulatory Committee chair Diane Sharpe, Strategic Planning and Policy Committee chair Laurie Hoverd and Finance and Corporate Committee chair Joe Scaramuzza.

For further information contact

Jeanette Tyrrell (on behalf of Council)

Ph: 027 5077 599

Or

Mervyn Gyde

Chair, Waipa Community Facilities Trust

027 478 3155