Lakes Leisure leaves $3.2m in assets

20:57, Sep 17 2013

Queenstown Lakes District councillors were given the final annual reports for Lakes Environmental and Lakes Leisure yesterday.

At a council finance meeting, chief financial officer Stewart Burns detailed the annual reports for the council-controlled companies (CCOs).

The CCOs were disestablished as part of the sweeping organisational restructuring of the authority earlier this year.

Mr Burns said Lakes Leisure assets and liabilities were transferred to council and net assets, amounting to $3.2 million, needed to be held in reserve and used for charitable purposes.

Once the accounts were cleared by auditors the council would apply to the New Zealand Companies Office to deregister Lakes Leisure.

Lakes Environmental, the council's former regulatory arm, was slightly different, he said.

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An "intangible assets" item of $2.4m that related to projections based on future contracts for providing services, known as goodwill, was written off and shares equivalent to debt issued to repay loans.

Essentially, the council bought the company's debt and the company used those funds to repay loans.

Before the decision to disestablish the CCOs, the revenue for Lakes Environmental was increasing, he said.

Revenue was up 6.3 per cent to $7.4m, resource management revenue increased and corporate services revenue, such as parking fines, was also up.

The Southland Times