Your Questions Answered - Debt is reducing

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The Annual Report of the Kaipara District Council for the year ending 30 June 2015 has been finalised and adopted by the Council. Once again, the Council has performed to plan and the financial results are pleasing. Budgets are being met, small surpluses are being generated, and debt is falling.

It is worth summarising the last four years.



We forecast revenue from rates to increase at around 3 percent per year for the next ten years.

Operating surpluses have been generated for the past three years. This is in stark contrast to the large deficits incurred in 2011 and 2012, before the appointment of Commissioners.

Debt is reducing. Commissioners capped debt on their appointment and resolved to take measures to bring debt down year on year. Debt is forecasted to drop this year to $74.5 million, and by 2025 to under $60 million.

The debt carried by the Kaipara District Council is not out of line when compared to many other Councils. Kaipara may have been described as a “cot case” a few years ago when financial and project management disciplines were absent and the Council was returning deficits. That is not the case today. Our debt is manageable.

The turn-around in Council finances have come about in part because financial disciplines are in place and costs are being controlled tightly; in part because efficiencies through the application of technology are being achieved; and in part because the Kaipara community has given the Commissioners time to straighten matters out before lobbying hard to get funds to support large scale community projects.

Legal fees remain high, driven by two matters. Firstly, the Council’s decision to call to account the former Chief Executive and the Auditor. Secondly, the decision by the Mangawhai Ratepayers and Residents Association to challenge rates and other matters of history in the Courts. The Commissioners are hopeful both these matters will be put to bed before they leave in October 2016.

Housing growth has put pressure on the Council’s planning and regulatory team. Most of this team is based in Mangawhai, where additional office space was secured during the year. While growth in building and resource consent applications has required the Council to increase staffing levels, the cost of these additional resources is covered by the fees charged for the services provided. The Council’s Annual Report is available on line, at www.kaipara.govt.nz.

Sales of surplus Council Property
At the Council meeting last week, we resolved to sell two surplus Council properties in Mangawhai – one at 211 Thelma Road (1,188 sq m), and one at 264 Molesworth Drive (1,780 sq m). Both properties are suitable for residential development. The proceeds from the sale of these sections will of course assist to pay down debt.

The Council reviewed its property portfolio two years ago. A number of submissions were received from members of the community at that time opposing any sale of beach-front property. These two properties do not fall into that category.

Please feel free to contact me by email - jrobertson@kaipara.govt.nz.

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