Waipa District Council welcomes Auditor General’s findings

Waipa District Council welcomes Auditor General's findings

17 December 2012

Waipa District Council has welcomed the Auditor General's report on matters arising from the 2012-22 local authority long term plans.

The report, released last week, found that overall local authorities are planning to live within their means, and they are not raising rates to unreasonable levels.

Auditor General Lyn Provost said that while some councils were planning to raise more debt net income always stays positive and local authorities stay well within the golden rule of fiscal policy that governments should only borrow to invest.

Waipa Mayor Alan Livingston said the report countered criticism earlier in the year by some who alleged the council's spending was out of control.

Our planned average rate increase over the 10-Year period is 4.1 percent compared to a sector average of 4.3 percent, said Mr Livingston.

We are also in the fortunate position of having one of the lowest public debt per capita ratios for local authorities in the Waikato, he said.

Our ratepayers can take heart that our council is in a sound financial position and our planned rates increases are well within what the Auditor General considers acceptable.

The council was currently working on its Annual Plan for the 2013/14 year which would start the financial year with a debt of $28 million.

This worked out to a debt per capita ratio of around $686 per person, much less than the majority of other councils in the Waikato region.

While our debt is set to increase during the next 10 years, this is due to a large investment in infrastructure that will put us in the best position in terms of delivering on the levels of service that our communities have come to expect, and to cater for forecast growth, said Mr Livingston.

It is about planning for our future and limiting the burden placed on ratepayers of today while still ensuring that there is adequate ability to provide for the ratepayers of the future.

Without taking this approach we would be doing nothing more than delaying the inevitable and future councils would find themselves trying to defend large rates increases for investing in emergency works brought on by a lack of foresight and planning, he said.

The Annual Plan would be released for public feedback in March and would be inviting comments on a number of issues including those raised by the amendments to the Local Government Act.

We encourage people to take part in this process. It is important that people have their say.

ENDS

For further information contact

Lisa Nairne

Senior Communications Advisor

Ph: 07 872 0062 or 027 532 1760

Email: lisa.nairne@waipadc.govt.nz