Council debt - out of control?

[donna]

Collectively, councils will owe $19 billion by 2022 (the end of the current long-term-planning phase) and most will rely heavily on generations of ratepayers to pay it back.

Source

Most of that is Auckland's debt too. While the can has been kicked down the road under mayor Len Brown - ratepayers will feel the pain soon.

The current 10-year plan flagged rates rises averaging 4.9 per cent until 2022 - the lower rises we've seen mean a shortfall in rates revenue. For 2015/16, the council needs to find savings of $30 million to achieve a 4.9 per cent rate increase.
Current projections show the annual revenue shortfall rising to $119 million in 2022.

Why are the rates rises so low? It's clear - they should be much higher now. Does it make more sense, the rates should be determined by an independent body not an elected Council? Is debt management really their thing? Racking up debt is - but managing it - I'm not so sure.

cheers,

Donna

[Davo36]

Len Brown says "Don't worry about the debt - we're building the world's most liveable city!"

The arrogance of it!

[speights boy]

Len Brown says "Don't worry about the debt - we're building the world's most liveable city!"
The arrogance of it!

Yeah, by pouring concrete into green sports venues.
This push for growth, growth, growth....."build it and they will come" attitude will leave a very different "liveable city" to our grandkids.
One they will likely look back on and ask...."why didn't anyone ask when is enough enough ?"

Cricket gets hit for high-rise

The No 2 ground and cricket pitch at Eden Park will be replaced with residential and commercial buildings of up to nine storeys, according to documents obtained by the Weekend Herald.

The Eden Park Trust Board, weighed down with about $50 million of debt and struggling to pay for future repairs and capital works, is eyeing the No 2 ground as a financial saviour.

[Davo36]

When I saw that article SB, I wondered if they were having to sell as a result of the Rugby World Cup.

I'm sure I read about the Eden Park people having to take on debt for that.

[Learning]

Look a the way councils just throw away money. WCC spends $25K on a "my kid could draw that" logo and then another $15K to remove a "+" from it.
A job that a regular contractor can do with two people in 10 minutes needs 8 council workers 3 managers for half a day for the same level of productivity.

[Davo36]

Want an example of a council organisation throwing away money? Here's one, the Papakura Business Association:

Over 3 years they have received a little over $500,000.00 in targeted rates from properties in the Papakura CBD area.

What have they done with this? If you guessed, basically nothing, then you are right. Most businesses don't even realise there is an association.

There isn't even a website.... after 3 years.... with $500k....

Now make sense of that.

[eri]

the reason rates aren't rising to meet the spending

is they are betting the average voter

doesn't mind selling their kids future away

to fund the councillors fat pensions

they don't even have the basic honesty

to be "tax + spend" lefties

rather "spend, bribe, borrow + delay" types