Airport $4.5M going to special council fund
By
KAY FORRESTER
The $4.5 million extra the Christchurch City Council will get from Christchurch International Airport will be set aside in a special capital development fund.
The council’s senior committee, the policy and finance committee, recommended yesterday a reserve fund to provide income for the benefit of city ratepayers in 1988-89 and 1989-90, to finance commercial initiatives, to contribute to major city facilities scheduled in the capital-works programme and to provide one-time capital costs associated with local government reform.
Making the recommendation, the committee’s chairman, Cr John Burn, said the wisest use of the money had to be made.
“There is a tendency with some councils to rush out and spend a windfall. We do not want to do that,” he said. Cr Burn said he had heard rumours he hoped were untrue that some councils were running down their reserve funds before amalgamation.
This is how the extra capital payment to the council came about: © The council has been paid $297,000 for a Russley Road property held by the council and financed from the council’s share of the joint-venture airport account.
© The council has received $52,074,059 from the joint-venture resources. From this, $43,200,000 was paid to the new Christchurch International Airport, Ltd, for shares, and $4,800,000
was lent as a debt advance.
© The council has been paid a licence fee of $338,364 for the April 1 to September 30 period the company ran the airport on licence.
© The joint venture has kept a contingency sum of $500,000, which is payable, less expenses, two months after the audit of the joint venture. ® Since April 1 the council has earned $309,477 in interest on joint-venture funds. That brings the extra payment to the council to $4,512,582.
The interest on the reserve fund will go into the council’s revenue. Cr David Close said he would like to see some of the money available for housing or urban renewal.
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Press, 11 October 1988, Page 9
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324Airport $4.5M going to special council fund Press, 11 October 1988, Page 9
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