Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Council seeking views on two proposals

News Release

Tuesday 20 November 2012

Council seeking views on two proposals: joining Funding Agency and joint venture structure for TERAX

ROTORUA 20.11.12: Rotorua District Council has released two proposals to the public and is seeking feedback on both from residents, by 4 December.

The first proposal the council is currently considering is to become a shareholding local authority (SLA) in the recently formed Local Government Funding Agency (LGFA).

The funding agency was formed in 2011 by a group of 18 councils, along with the Crown which holds a 20% shareholding. LGFA’s primary purpose is to provide lending sources for councils at lower cost than other lending institutions in the marketplace.

The highest level of participation for councils in LGFA is as a shareholding local authority and requires councils to invest capital. Those participating councils would however expect to receive a return on their investment while also becoming a guarantor of the agency.

Corporate & Customer Services Committee chair Janet Wepa says membership would allow Rotorua District Council to borrow at lower interest rates than at present. She said the benefits would outweigh any potential costs or risks involved.

“Participation in the funding agency would also spread our debt maturity profile and strengthen our liquidity requirements by increasing the options for accessing secure long term funding.

“We could expect a net funding benefit of $30,000 per annum for every $10 million raised in loans,” said Mrs Wepa.

“However if 50% of our borrowing requirements, as signalled in the Long-term Plan, were sourced through LGFA we could expect to save an estimated $750,000 in interest payments over a five year period.”

LGFA has been awarded an AA+ credit rating from both Standard and Poor’s, and Flitch, a rating that is on par or stronger than banks operating in New Zealand.

The other proposal Rotorua District Council is currently consulting with the community on is a proposed Limited Partnership structure between the council and Scion.

This legal entity would provide for joint-venture management of the commercialisation of TERAX, the patented and trademarked technology developed by Scion for transforming waste biosolids from the city’s wastewater treatment plant into usable products.

Rotorua District Council Infrastructure Services Committee chair Glenys Searancke said the council preferred the Limited Partnership option for managing the commercial licensing of TERAX to third parties.

“This option offers the best structure, given our need to limit liability, provide flexibility and optimise tax efficiency, while protecting our 50 per cent ownership of the intellectual property.”

TERAX technology is an innovative world-first process for managing organic waste. It “cooks” biosolids and breaks the material down into useful industrial chemicals, energy or fertiliser products.

The council and Scion have built a large-scale pilot plant to trial the new technology and this is now operating successfully at the council’s wastewater treatment plant.

Copies of both the Local Government Funding Agency and TERAX proposals are available from the council’s customer centre or can be downloaded online from the council website www.rdc.govt.nz.

Submitters will be given the opportunity to speak to the mayor and councillors in support of their Local Government Funding Agency proposal submissions or TERAX proposal submissions at public hearings on 10 December.

Submissions close with the council on Tuesday 4 December.

[ENDS]

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

  • Week in Parliament 22-05-15
  • Saturday Sitting
  • House Rises At Midnight
  • Telco Levy Bill Passes
  • Telco Levy Bill Completes First Reading
  • Social Housing Bill Passes Under Urgency

  • TPPA: University Of Auckland Warns Of Negative TPP Impact

    The University of Auckland May 20, 2015 University of Auckland Warns of Negative TPP Impact With the Trans Pacific Partnership (TPP) negotiation drawing to a close, the University of Auckland has expressed serious concerns about its potential implications. ... More>>

    NZ Flag: Flag Referendum Gets Hit Hard In New Poll

    The latest Campbell Live text poll confirms it is time for the Prime Minister to listen to the public and shelve his flag referendum, says the New Zealand First Leader Rt Hon Winston Peters. More>>

    Gordon Campbell: The Government’s Belated Moves On Property Speculation

    Is it a property tax on capital gains or a capital gains tax on property? The Jesuitical distinctions in the government’s spin about its latest moves on property speculators are all about whether the government can claim that it jumped, or confess that it ... More>>

    Grant Robertson:
    Key Can’t Just Be Prime Minister For Parnell

    John Key must show New Zealanders in next week’s Budget that he is more than the Prime Minister for Parnell, and is also the Prime Minister for Pine Hill, Putararu and Palmerston North, Labour’s Finance spokesperson Grant Robertson says. In a ... More>>

    Labour Party: More Regional Jobs Go In Corrections Reshape

    News that 194 Corrections staff are to lose their jobs will have ramifications not only for them and their families but for the wider community, Labour’s Corrections spokesperson Kelvin Davis says. Prison units at Waikeria, Tongariro and Rimutaka ... More>>

    ALSO:

  • NZ First - Prison Job Losses to Send Money Offshore
  • TPPA: ‘Team Obama’ Regroups On Fast Track, Still Not Deliverable

    ‘After yesterday’s stinging and unexpected defeat for the Obama administration’s attempt to advance Fast Track legislation in the US Senate, Senate leaders have worked up a compromise they think will get them past this blockage’, according to Auckland ... More>>

    NZ Government: 5,500 More Doctors And Nurses In Our Hospitals

    Health Minister Jonathan Coleman says a record number of doctors and nurses are working in District Health Boards across the country. More>>

    Controller and Auditor General: Katherine Rich Conflict of Interest Decision

    We are writing to you about a matter that has been raised with us by members of the public. More>>

    ALSO:


    Budget 2015: Andrew Little On The 2015 Budget

    Speaking to the Chamber of Commerce, the Labour opposition leader attacked the government’s approach to economic issues facing New Zealand. He said they have been “more than reckless in their complacency” and “the next week’s budget will do nothing ... More>>

    Defence Force: NZDF Building Partner Capacity Mission Personnel In Iraq

    NZDF Building Partner Capacity Mission Personnel in Iraq The New Zealand Defence Force Building Partner Capacity training mission contingent is in place at Taji Military Complex in Iraq. The Chief of Defence Force Lieutenant General Tim Keating says the ... More>>

    PM Press Conference: ACC Levy Cuts Announced

    In a press conference this afternoon in Wellington, ACC Minister Nikki Kaye proposed $500 million worth of ACC levy cuts. More>>

    Quakes: New Process For Red Zone Crown Offers

    Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

    ALSO:

    Gordon Campbell: On The Battle Obama Is Waging Over The TPP

    For the past two and a half years, this column has been arguing that the fate of the Trans Pacific Partnership (TPP) deal will hinge on whether US President Barack Obama can win Trade Promotion Authority (TPA) from Congress... Last week, the White House finally, finally unveiled a draft TPA Bill. More>>

    ALSO:


    Gordon Campbell: On lessons for Labour from the UK election
    If the polls were right – and the pollsters kept telling us how accurate they’d been in 2010, and even Nate Silver was getting the same results – there seemed no way that the British Labour Party could lose last Thursday’s British election. With Labour predicted to win around 270 seats and the Scottish National Party batting around 55-60 seats, Labour seemed to be home free. But…as we now know, things didn’t turn out that way. Labour ended up with 232 seats and the Conservatives swept back to power with an outright majority, after winning only a little more than a third ( 36.9%) of the votes cast.MORE >>
    Also.

  • NZ PM John Key - PM congratulates David Cameron after UK election
  • The Nation IV Transcript - Hack Attack author Nick Davies
  • Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
    More RSS  RSS
     
     
     
     
    Regional
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news