Council debt levels 'unaffordable and unsustainable'
Kapiti Social issues campaigner and former Paraparaumu/Raumati Community Board member Dale Evans says KCDC's debt is out of control with levels now reaching unaffordable and unsustainable levels.
"In today's economic climate and with the ever increasing debt, the Council is putting this Community into, it is no wonder the Community at large is deeply concerned.
Mr Evans says it appears Council is taking a punt that the debt will not have to be repaid if amalgamation takes place. "If this does not happen Rate Payers are in serious debt, (on one hand KCDC for a start did not want to be a part of amalgamation, but now they are realising that the only way out of the debt incurred is amalgamating with other Councils)but that could backfire badly and the people of Kapiti will be the losers for it."
"Are we going to finish up in Bankruptcy. The concern is the amount of interest being paid on debt from rate payments.
"If we take the number of Rate Payers in Kapiti of approximately 16,000 – this makes the debt per Rate Payer of $7210 if the figure supplied by KCDC is correct $115,369,069.00 as stated in the Corporate Business Agenda 14th Feb 2013 under Recommendations."
As stated in the Draft Plan, the debt is set to rise to $196,000,000 - the breakdown then makes the debt per Rate Payer $12,250.
Mr Evans has asked Council to explain what they using as equity with regards to this debt.
"This has all the hallmarks of a wildspending Council out of control," says Mr Evans.
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