Dear New Zealand Local Government Funding Agency Limited,

Please provide in excel format as follows

List of Current Shareholders
Annual Rates Revenue Only for the Shareholder 2020 - 2024
Total Debt Associated with that shareholder for those years

You previously provided me with the same information here

https://fyi.org.nz/request/25971-individ...

However I am wanting to include the 2024 financial year to date and the current numbers associated so please provide an additional column for the 2024 year to date.

Can you also tell me who holds / owns the Local Government Fund Debt - Blackrock? Vanguard?

Is it safe to say the ratepayer / shareholders who have paid billions in rates for hundreds of year don't actually own any community assets because they are riddled with debt?

Under the local government act NZ councils have several key fiscal obligations as follows

Prudent Financial Management
Councils must manage their revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community.
Balanced Budget Requirement
Councils must ensure projected operating revenues are set at a level sufficient to meet projected operating expenses.
Debt Management
Councils must ensure debt is managed prudently and in a manner that promotes the current and future interests of the community.
Financial Reporting
Councils must prepare and adopt an annual report, which must include audited financial statements for the year.
Funding and Financial Policies
Councils must adopt funding and financial policies, including a revenue and financing policy, an investment policy, and a liability management policy.
Disclosure Statements
Councils must prepare and adopt a financial strategy and an infrastructure strategy as part of their long-term plans.
Borrowing Limits
Councils must set limits on rates, rates increases, and borrowing in their financial strategies.

How do councils get away with this? For example in 2023 Wellington City Council borrowed $579,000 per day!

This is financial arson - any director would be locked up for running a private company this way!

Please provide the numbers at the earliest convenience.

Yours faithfully,
Chris

Dear Mark / Enquiries

To add to this are you also able to provide the following

Loan Frequency: How frequently do councils borrow from LGFA? Are loans issued on a monthly, weekly, or other basis and what the process is for this? For example Wellington City Councils loans have gone up over $2.9m dollars a day this financial year which are obviously loans & interest? Are Wellington City Council coming to you every day asking for $3m dollars and what are the forms / applications that are required to be completed?

Due Diligence: What due diligence processes does LGFA undertake before approving loans to councils?

Please provide details on the criteria and assessments conducted.

Impact on Credit Ratings: How does borrowing significant amounts, millions of dollars per day, affect the credit ratings of councils? What measures are in place to manage the associated risks especially when council projects are largely unwanted but are able to be forced through due to LGFA providing associated loans?

Financial Covenants: What financial covenants must councils adhere to when borrowing from LGFA, and how do these covenants influence their borrowing capacity and credit ratings?

Compliance with Legislative Frameworks: As a council-controlled organization (CCO), how does LGFA ensure compliance with the Local Government Borrowing Act, the Financial Markets Conduct Act, and the Public Finance Act?

What measures are in place to uphold fiscal responsibility in its operations?
National Security Concerns: Given the potential for large amounts of leveraged debt, what strategies does LGFA implement to address national security concerns?

How does LGFA manage the risks associated with significant borrowing by councils, particularly in relation to liquidity and financial stability?

Councils appears to have a never ending stream of money with no oversight by you the CCO in terms of any due diligence and prudent lending and debt levels. As an example Wellington City Council get circa $500m in rates but day to day spend $800m per annum. At this rate they are also going to be $2B in debt by the end of this year which is 18% of the value of the assets they own.

I appreciate your attention to this matter which appears to show the LGFA are largely facilitating the financial arson by councils by writing daily cheques. Maybe you don't live in Wellington - but I could probably point out $200m in savings of STUPID projects that have made the city a lot less livable whilst we have sewerage in Days Bay and flooding down a main arterial route. And council still seem to want to burn down the golden mile with another $70m for a project nobody actually wants. Why are you assisting with putting years and years amount of debt on the next generations?

Stop loaning on waste / fraud and abuse.

Yours sincerely,

Chris McCashin