Kaipara council calls for audit of its books

Kaipara District Council has called for an independent audit into its financial health and long-term sustainability.
Deputy mayor Julie Geange called on the terms of standing orders to move the recommendation for an audit to be added to last Wednesday's agenda.
The council has instructed chief executive Jack McKerchar to engage PJ Associates of Tauranga to undertake an independent review on the financial health and sustainability of the council.
Mr McKerchar said he not only agreed to the recommendation but supported it. The recommendation was passed with virtually no comment from other councillors.
After the meeting, Ms Geange, who is also the finance portfolio holder, said the council wanted the review so it could better understand its financial situation.
She said the audit would help the council plan through its cash-flow situation and assist with long-term planning.
"Council wants to be more transparent and accountable to ratepayers and the report will aid us in this process," said Ms Geange. "Nor is the audit about anyone's lack of ability to manage finances - it's about improving our systems.
"We want to better understand the current state of our finances, create a future financial strategy, improve reporting to council and the community and have prepared for the reporting requirements under the Local Government Act, which requires a pre-election report."
Last August, Mayor Neil Tiller said unpaid rates ($2.29 million) and water arrears, unpaid resources consent fees ($1.2 million) and other general debtors accounted for $4.3 million owed to the council.
This debt was putting unprecedented pressure on the council's cash flow.
Ms Geange urged people to be responsible and make suitable arrangements either with their banks or to call the council and sort out some form of payment.
Since August, the council had made inroads into reducing the historical rating arrears, Ms Geange said.
A concentrated effort by council to enforce the provisions of the Rating Act had dramatically reduced rates owed prior to July 1, 2010, by almost $1 million.
The outstanding $1.3 million is on arrears on Maori land - about 60 per cent of rateable Maori land in the district.
"People who don't pay their rates affect other ratepayers - not to mention the penalties they incur for themselves because of non-payment," said Ms Geange.
She said the council staff would continue to encourage ratepayers to make suitable arrangements for any arrears owed.
Current rates owed for the three instalments from July 1 to December are $706,000 compared with $679,000 for the same period last year.