Tauranga City Aquatics Ltd, a Tauranga City Council controlled organisation, admits running the Mount Hot Pools as a cash cow and using the profits to subsidise other parts of its operation.
The information is contained in Commissioner Greg Hill's decision to refuse TCAL planning consent to expand the hot pools.
The Mount Hot Pools.
An expansion some city councillors tell SunLive that TCAL has already called tenders for and awarded the contract.
The pools have been run down in the process and are in need of an upgrade that TCAL CEO Tania Delahunty told the consent hearing will cost about $2.5 million.
The hearing also heard that the hot pools have over the last 10 years returned an annual profit of between $200,000 and $500,000, but that the money was used to bolster other TCAL pools including Greerton, Memorial Park and Otumoetai.
The Mount Hot Pools have had no significant money spent on them since Tauranga City Council absorbed the former Mount Maunganui Borough Council facility in 1989.
In 2008, it was estimated about $2 million was needed to keep the pools open and meet current legislative requirements for water filtration etc.
TCAL director Andrew King told the consent hearing attendances have dropped considerably since 2000/2001 with the reason given to surveyors that it is because of the low standard of the facilities.
8 comments
Pool subsidy
Posted on 24-03-2011 12:11 | By tia
This is acceptable business operation. Any business will use profits from one part of its operation to support/bolster another which may not be doing so well. No different from a bus company propping up one unprofitable route by the success of another. It is pleasing to see TCHL being business-minded and not influenced by politicians.
@ JSmithington + tia
Posted on 24-03-2011 13:25 | By SpeakUp
@ JSmithington + tia You cannot be oblivious to the misappropriation of public money via TCAL. WE the ratepayers are not stupid enough to accept deliberate attempts to talk this issue down. What are you two talking about? The Mount Pools are NOT a normal business. NOTHING that council operates is a normal business. Running the Mount Hot Pools as a cash cow and using the profits to subsidize other parts of its operation might be able to be explained as normal business decision and might aid these other pools, however, it averts awareness away from the fact that operations like the Mount Hot Pools are used by TCC's chums to rip off the population of Tauranga! No re-investment or significant money spent since 1989 (!) because it's siphoned off (a good part to feed the bureaucracy) and now the taxpayer is expected pay for this neglect. In light of a recent ‘cinic' comment, the whole management of the Pools ought to be replaced. Quote 'It's a hole in the ground with water in it. It has a fence around it with one entrance. It has a shed to get changed in. Pool Management (not including the people who actually do the work at the pools) Cost is $750,000 last year. Admin $512K, Consultants $198K and Audit $37K. Interest paid to the council and TECT $332K. Administration services provided by the Council, $125K. It is a Council Compensates Oldboys. Over the top management and bureaucracy by the council as usual whether they are directly or indirectly involved makes no difference to the ratepayer, either way they are shafted.” These people would have no chance of employment in market-orientated business.
If the hotpools lost money . .
Posted on 24-03-2011 14:19 | By JSmithington
If the hotpools lost money then ratepayers and users would have to pay even more at the Tauranga pools. It's good that the profit goes into council pools and swimming stuff. Sorry to disagree with SpeakUp on that. But I do agree that those in charge of the pools should be accountable and guess they will resign if it turns out they let the contract already.
Resign!
Posted on 24-03-2011 14:34 | By cinik
They should be charged with corruption and the people supposedly in charge, given that TCAL is a CCO, that would be the council must also pay the price.
TO MUCH
Posted on 24-03-2011 23:37 | By THE PELICAN BRIEF
TCAL has a gross revenue of about $900,000 pa, TCC pays in about $9.1m a year so balance the books at around a $80,000 loss. You are in a dream land to say that any pool makes money, there are losses and bigger losses ... Baywave is the monster of them all of course. The pool activities lets say earn 10% of what the running costs are pa. Ratepayers pay the balance, The Mt Hot Pools plan was just a further insult to injury for the "Turkeys" of Tauranga to pay.
BAD MANAGEMENT
Posted on 25-03-2011 14:15 | By GESTUREPOLITICS
TCVL CEO TANIA DELAHUNTYS statement that the Mount Hotpools made a profit of between $200k and $500k per annum over the last 10years is mindblowing stuff. Doesn't she even know the exact figure? Having regard to current usage I would be surprised if more than 2000 a week went to the MOUNT HOTPOOLS equating to gross annual revenue of $5OOK pa not profit. TCVL can shuffle around what little money there is as much as it likes.If TCVL doesn't use moneys to maintain the Mount Hotpools it can't whinge when it gets a catch up maitainance bill all at once for $2.5m. That's the result of bad business practice on commercial buildings.None of the figures provided by TCC and TCVL stack up and frankly I don't believe them.
BAD MANAGEMENT
Posted on 25-03-2011 15:15 | By GESTUREPOLITICS
Correction TCVL should read TCAL
ARTHER OR MARTHA
Posted on 30-03-2011 02:06 | By The Master
Left or right, up or down who would possibly know, when you have a situation where the small about of money in is "wonderful" is actually a joke becasue all the bills are being ignored. That is happening becuase TCC not TCAL pays them. It only happens at Town Hall.
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