It seems ratepayers have had enough and are demanding the council
prioritise essential services over niceties.
Here are some finance facts.
Over the last three years, a typical house in urban Whangarei
has had a total rate increase of 27%. This includes a 25% increase by the Whangarei
District Council (WDC) and a whopping 36.2% by the Northland Regional Council (NRC).
These increases are more than 2 and 3 times the rate of inflation,
respectively.
The WDC will increase rates by another 9.8% this year, and the NRC by 3.6%.
During the last term of the current council, WDC debt has
increased from $192 million to $265 million. The council is projecting it to
rise to just under $450 million within five years.
Today, the interest cost on council’s debt is around $12
million. That will rise to $20 million within five years. A significant portion
of the rate increases are being used to pay interest.
Concerns over the mismanagement of council finances have prompted
the Minister of Local Government to float the idea of imposing a rates cap on
local councils. His proposal follows comments by Finance Minister Nicola Willis
on Radio NZ, where she likened councillors to kids in a candy store.
"Councils don't always do a great job of spending your
money like you would spend it. There are wasteful projects - there is evidence
of that. We want councils focusing on the things people expect them to do,
which is the rubbish, the roads, the pipes, the basics - and not all the
fanciful projects."
Christchurch Mayor, Phil Mauger, agrees. He has been critical
of other councils increasing rates and debt to pay for things like cycleways.
LETTERBOX will be asking all candidates if they support or
oppose a rates cap.