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Brian Anderson The Western Front www.sunlive.co.nz |
WBOPDC has insisted its financial management is rated as one of the best in the country. The figures are out; we are fourth.
We have the fourth highest debt per capita of all district councils in New Zealand. Even worse, the council doesn't seem to see this as a problem. Much of the increase in our rates this year came from servicing a debt that rose from $112m in August last year, to $130m in May, $148m recently and is expected to rise to $197m by the end of next year.
We have now been told that when the debt was $130m every person in Western Bay owed $3234 and this will rise to $4930 by the end of 2012. Further loans for local projects to be paid by targeted rates will be added to this figure. These projects, when completed, could lift the Katikati debt to $7000 per person, an increase of 360 per cent since August last year. This seems an absolutely ridiculous situation with rates rising close to $3000 before any annual general rate rises are considered. Raising loans for these Katikati projects this year is totally inappropriate considering our debt level and the current financial climate.
Every town has its own local projects and the information is available for similar forecasts. Te Puke's new projects are similar in size to those planned for Katikati. Omokoroa wants the whole Bay to cover their $40m debt. Waihi Beach's debt is climbing quickly. The first of the loans for the $17m projects in Katikati has already been raised for the new library site. Loans are needed because the council had run out of cash. It is broke.
Mr Key's advice to councils to forgo expensive projects and concentrate on maintaining infrastructure has been ignored. Council has only deferred some budget items to the long term plan with the suggestion of further pruning next year.
I don't accept that argument. The council has recently moved to adopt some plans and ‘future proof' a Kauri Point boat ramp and the Katikati Town Centre decisions because they intend these projects to continue without any further consultation. Council's approach to planning and budgeting is decidedly suspect and these projects are looking more like part of a council attempt to disguise its position with false promises of unsustainable projects.
I have used figures that are available from council reports and newspaper analyses. I would be extremely happy to have these figures challenged by a more knowledgeable authority who is allowed to provide a more accurate analysis and set everyone's minds at rest, but I can not see how any defense is going to also justify WBOPDC having the fourth highest personal debt per capita of councils in New Zealand and be appearing to enjoy it. This fourth place was calculated on the $130m debt figure. Who knows? Council might even earn first place within the year. It certainly appears to be trying.

