More lies again in the Council Chamber last night at full Council, and this time by Cllr David Drury Monk (Con) – the Occupational Therapist – and leader of Folkestone & Hythe District Council.
He stated that “the Otterpool scheme isn’t costing us money today.” Now given the Capital Strategy 2022/23 states:
The main capital investment projects include further expenditure on the Otterpool Park Garden Town Development (£9.4m)
There is a net cost being incurred for the land and property acquired for the Otterpool Park development, mainly due to capital financing costs.
Our Council like any other council can access capital finance for infrastructure
investment from a number of sources, but borrowing is the most common of
these. And our Council has borrowed £35 million to date to finance the development of Otterpool Park, and that debt needs to be paid.
Debt is only a temporary source of finance, since loans and leases must be repaid, and this is therefore replaced over time by other financing, usually from revenue which is known as minimum revenue provision (MRP). A simple way to understand MRP is the amount a council has to set aside from its day-to-day budget to repay the money it borrows. Given that, the Otterpool Scheme is costing us money from the budget, regardless of Cllr Monk’s ignorance about the accounts.
This means, the Otterpool Scheme is costing us money today. So Cllr Monk really should read the papers rather than spout utter rubbish and deliver misinformation and lies to Cllrs and residents when addressing us all, about Otterpool.