From zero to 10 in six months

In the draft proposal document there has been a big jump, a $10m jump in the net financial position after ten years of amalgamation compared with the Assessment of Wairarapa Local Government Options document from June last year.

Last year (2016) the LGC referenced this document on their website - Assessment of Wairarapa Local Government Options PDF 755KB . This document included a table on page 11 of comparative revenue, costs and savings over a ten-year period as a result of amalgamation.

The net result after ten years was essentially zero. No cost and no benefit, financially neutral.

In the LGC draft proposal published March 15 2017, the position has changed.

On page 15 of the draft proposal is a table of revenue, costs and savings over a ten-year period as a result of amalgamation.

The revenue figures are near identical, the costs are near identical but the Net Efficiencies have changed considerably.

The net result after ten years is now $10.1 million. 

That's a pretty big change. One of the two tables is wrong. The 2016 version or the 2017 one. Which one?

In the image below:

  • The green table at top is from the 2016 Morrison Low Report.
  • The blue table is from the draft proposal.
  • The green shaded areas are pretty much the same.
  • The orange shaded areas are different.

Comparison of financial results 2016 and 2017 versions The LGC describe it as such:"after meeting the transition costs, modest cost savings accumulate progressively into the future, resulting in $10.1 million saving over the first 10 years."

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