2016-08-09 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                               9 AUGUST 2016




Financial Implications for Council
       These issues have been dealt with separately under the two headings above.
       It should be noted however, that the capital and operational assessments have been
         calculated separately by AEC and the cumulative impact would be more significant on
         ratepayers depending on whether or not grant funding could be obtained for the capital cost
         of the project.
       To give the Council a range of impacts on general rates with different scenarios:-
         o Assuming no grant funds were available and the capital funding was borrowed from
             QTC and the annual operating losses were $2.020M, then the cumulative impact on the
             general rate to offset the cost of loans and operations would be 10.45%.17
         o Assuming grants of $20m (requiring a $10M loan) and annual operating losses of
             $1.951M, then the cumulative impact on the general rate to offset the cost of loans and
             operations would be 6.26%.18

Economic Benefits Assessment
       The AEC report identifies the economic benefit for the different phases of such a project
         including construction and operational phases for both the convention centre component
         and the performing Arts centre component. Obviously, the construction benefits are one off
         and the operational benefits are annually recurring.         The economic impacts are
         summarised in the table below:




          (Note – GVA means Gross Value Add – this is the measure of the value of goods and services produced in
          an area, industry or sector of the economy).




17
     General rate impact calculated by Council staff
18
     General rate impact calculated by Council staff

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