Loans under the LGFA Shareholder Agreement
Andrew Mitchell made this Official Information request to Waimakariri District Council
The request was partially successful.
From: Andrew Mitchell
Dear Waimakariri District Council,
My understanding is that an issuance of a guarantee under the Guarantee and Indemnity Deed (LGFA), gives rise to a financial instrument for financial reporting purposes, which needs to be reflected in the financial statements of the WDC (being a party to that Deed), and would be accounted for as a financial instrument under NZ IAS 39, given that these guarantees are measured at fair value when they are initially recognised, therefore
1. What are the list of loans that the WDC has applied and or received under the LGFA shareholder agreement, and
2. What are the cashflow transactions, debits or credits, for each of those loans, and
3. In respect of Local Government Act 2002 §14 1a(i) & (ii), 1f and 1fa(i) and (ii), what is the specific document, data and or evidence that complies with §10 1(a), in the decision to what these loans have been applied for?
Yours faithfully,
Andrew Mitchell
From: Thea Kunkel
Waimakariri District Council
Good Day
I hereby acknowledge receipt of your official request, under the Local
Government Official Information and Meetings Act 1987, for information
about the loans that the Waimakariri District Council has applied and or
received under the LGFA shareholder agreement.
We received your request on 7 September 2023 and will endeavour to respond
as soon as possible, and in any event no later than 20 working days from
the day that your request was received. If we are however unable to
respond to your request within this timeframe, we will notify you of an
extension.
Your request is being handled by the Council’s Governance Team. If you
therefore have any queries, please feel free to contact myself at
[1][email address]. If any additional factors come to light which
are relevant to your request, please do not hesitate to contact us so that
these can be taken into account.
Yours Sincerely
Thea Kunkel | Governance Team Leader
Governance
Phone: [2]0800 965 468 [3](0800 WMK GOV)
Mobile: [4]+64272543940
DDI: [5]+6432669186
[6]Waimakariri District [7]Youtube [9]waimakariri.govt.nz
Council Logo Icon.png [8]Facebook Icon
References
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1. mailto:[email address]
2. file:///tmp/tel:0800965468
3. file:///tmp/tel:0800965468
4. file:///tmp/tel:+64272543940
5. file:///tmp/tel:+6432669186
6. https://www.waimakariri.govt.nz/home
7. https://www.youtube.com/WaimakaririDC
8. https://www.facebook.com/WaimakaririDist...
9. waimakariri.govt.nz
https://www.waimakariri.govt.nz/home
From: Thea Kunkel
Waimakariri District Council
image001.jpg
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image002.png
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image003.png
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OIA Response to Council s loans with the New Zealand Local Government Funding Agency Limited.pdf
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CURRENT LOANS.pdf
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Good Day
You requested information about the Waimakariri District Council's loans
with the New Zealand Local Government Funding Agency Limited.
We supply this information in the attached documents and trust it answers
your current query.
Regards
Thea Kunkel | Governance Team Leader
Governance
Phone: [1]0800 965 468 [2](0800 WMK GOV)
Mobile: [3]+64272543940
DDI: [4]+6432669186
[5]Waimakariri District [6]Youtube [8]waimakariri.govt.nz
Council Logo Icon.png [7]Facebook Icon
References
Visible links
1. file:///tmp/tel:0800965468
2. file:///tmp/tel:0800965468
3. file:///tmp/tel:+64272543940
4. file:///tmp/tel:+6432669186
5. https://www.waimakariri.govt.nz/home
6. https://www.youtube.com/WaimakaririDC
7. https://www.facebook.com/WaimakaririDist...
8. waimakariri.govt.nz
https://www.waimakariri.govt.nz/home
From: Andrew Mitchell
Dear Thea Kunkel,
re Your Reference: 230919145795, thankyou for you response.
You state that "The Council does not take out separate loans for each activity. Instead, the external loans are managed for the Council's cashflow. All the work done by the Council is aimed at meeting the needs and priorities of its community as identified during consultation with communities, especially during the Annual and Long-Term Plan consultation processes."
I asked in point 3:
3. In respect of Local Government Act 2002 §14 1a(i) & (ii), 1f and 1fa(i) and (ii), what is the specific document, data and or evidence that complies with the Local Government Borrowing Act 2011 §10 1(a), in the decision to what these loans have been applied for?
Am I correct in stating that the requirements for Council are as follows,
(a) a local authority should—
(i) conduct its business in an open, transparent, and democratically accountable manner; and
(ii) give effect to its identified priorities and desired outcomes in an efficient and effective manner:
and,
(f) a local authority should undertake any commercial transactions in accordance with sound business practices; and
(fa) a local authority should periodically—
(i) assess the expected returns to the authority from investing in, or undertaking, a commercial activity; and,
(ii) satisfy itself that the expected returns are likely to outweigh the risks inherent in the investment or activity;
Therefore, my point being, compliance with the aforementioned acts and NZ IAS 39, would it not require the Council to attain or generate specific criteria and requirements for the purpose of the loan, instead of borrowings essentially as a consolidated fund or similar arrangement without the usual and specific requirements for the "open, transparent, and democratically accountable manner" requirement under the act, and aforementioned accounting standards?
Yours sincerely,
Andrew Mitchell
From: Thea Kunkel
Waimakariri District Council
Good Day
I hereby acknowledge receipt of your official request, under the Local
Government Official Information and Meetings Act 1987, for additional
information about the Waimakariri District Council's loans with the New
Zealand Local Government Funding Agency Limited.
We received your request on 10 October 2023 and will endeavour to respond
as soon as possible, and in any event no later than 20 working days from
the day that your request was received. If we are however unable to
respond to your request within this timeframe, we will notify you of an
extension.
Your request is being handled by the Council’s Governance Team. If you
therefore have any queries, please feel free to contact myself at
[1][email address]. If any additional factors come to light which
are relevant to your request, please do not hesitate to contact us so that
these can be taken into account.
Yours Sincerely
Thea Kunkel | Governance Team Leader
Governance
Phone: [2]0800 965 468 [3](0800 WMK GOV)
Mobile: [4]+64272543940
DDI: [5]+6432669186
[6]Waimakariri District [7]Youtube [9]waimakariri.govt.nz
Council Logo Icon.png [8]Facebook Icon
References
Visible links
1. mailto:[email address]
2. file:///tmp/tel:0800965468
3. file:///tmp/tel:0800965468
4. file:///tmp/tel:+64272543940
5. file:///tmp/tel:+6432669186
6. https://www.waimakariri.govt.nz/home
7. https://www.youtube.com/WaimakaririDC
8. https://www.facebook.com/WaimakaririDist...
9. waimakariri.govt.nz
https://www.waimakariri.govt.nz/home
From: Thea Kunkel
Waimakariri District Council
image001.jpg
31K
Download
image002.png
2K
Download
image003.png
1K
Download
OIA District Council s loans with the New Zealand Local Government Funding Agency Limited.pdf
447K
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View as HTML
Attachment A Screenshot 2023 11 02 110844.jpg
220K
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Good Day
You requested additional information about the Waimakariri District
Council's loans with the New Zealand Local Government Funding Agency
Limited.
We supply this information in the attached documents and trust it answers
your current query.
Regards
Thea Kunkel | Governance Team Leader
Governance
Phone: [1]0800 965 468 [2](0800 WMK GOV)
Mobile: [3]+64 27 254 3940
DDI: [4]+64 3 266 9186
[5]Waimakariri District [6]Youtube [8]waimakariri.govt.nz
Council Logo Icon.png [7]Facebook Icon
References
Visible links
1. file:///tmp/tel:0800965468
2. file:///tmp/tel:0800965468
3. file:///tmp/tel:+64%2027%20254%203940
4. file:///tmp/tel:+64%203%20266%209186
5. https://www.waimakariri.govt.nz/home
6. https://www.youtube.com/WaimakaririDC
7. https://www.facebook.com/WaimakaririDist...
8. waimakariri.govt.nz
https://www.waimakariri.govt.nz/home
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