Len Anderson
An assurance the Forsyth Barr Stadium will cost the
average ratepayer no more than $66 a year cannot be true, when
other costs for the project have increased, Stop the Stadium's
counsel Len Anderson says.
The figure was "demonstrably incorrect", Mr Anderson said in
his 21-page affidavit to the Court of Appeal in Wellington,
and the resulting figure of $5 million a year raised was not
enough to pay even the capital of the council's loans.
The likely contribution would be twice that amount, he said -
at least $10 million.
This would mean ratepayers would have to pay double the
amount that they had been told they would have to pay.
But Dunedin City Council finance and corporate support
general manager Athol Stephens argued in his own affidavit
the repayments would total $10 million a year, including the
ratepayers' $5 million, $3 million from council-owned
companies' cash flow, and a tax saving of $2 million, from
having a company holding the stadium debt within the
council's group of companies.
There were other changes, he said, that meant there had been
no change to the $66 a year figure.
These and other aspects of the council's funding for the
stadium formed the heart of the debate before the court this
week.
The court's three judges reserved their decision, which
awaits as the final possible action that could stop
construction at the Awatea St site.
Mr Andersen listed the changes to the stadium he said had
occurred since full council consultation on the project last
occurred for the 2008-09 year.
The cost had increased from $188 million to $199 million, the
Community Trust of Otago's contribution had fallen from $10
million to $7 million, and private-sector funding had changed
to the point that 3% instead of 53% would be received before
the stadium was completed.
The Government had provided $15 million, but the cost to the
city council trading organisation had increased from $91.4
million to $108 million.
"The ratepayer contribution for the average value residential
property must have increased significantly from $66 per annum
despite assurances to the contrary from the council," he
said.
The changes were significant, Mr Andersen said, and
ratepayers should be consulted on the true cost.
Mr Stephen's affidavit said a drop in interest rates of 2%
would reduce interest costs in year one by $2.1 million, and
produce a saving over 20 years of $32.9 million.
The reduction in private-sector funding had been offset by
the Government's $15 million grant.
Despite the cost of the stadium increasing and the reduction
in funding sources, the debt servicing costs were not
significantly different because of the reduction in interest
rates.
"The cost to the average value residential property ratepayer
is also unchanged."
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