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Council debt levels 'unaffordable and unsustainable'
February 2013

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.

 
Comments
Kiwikid (added 226 weeks ago)
Dale is right. I sure as hell don't want to be part of a Super Council. When I left Wellington in 1986, my property was pretty much equal in value to what I bought here in Kapiti. I paid $300 a year and now the rates for that same property is almost $2600. When I arrived at my current house rates an astounding $1132 and are now $2550. Now you do the maths at how the rates in Wgtn have spiralled out of control. That bodes very badly for us because like it or not, Wgtn will have the voting numbers to push through what they want come hell or high water.
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