Letters: Council debt getting worse

The Rotorua Lakes Council's debt will get worse, says a reader. PHOTO/FILE

On Thursday July 5, the Rotorua Lakes Council heard that it had run up another $20,910,000 in debt in the past year to take the total from $168,750,000 to $189,660,000m.

It plans to increase debt over the next five years to reach $269 million by adding about $16m a year.

The financial strategy is clear – spend up large and leave it for the next lot.

The problem is endemic. The Federated Farmers' Rates Report (2017) showed that the CPI rose by 21 per cent between 2007 and 2017, the Local Government Costs Index rose by 29 per cent, and local authority rates and charges rose by 71 per cent.

The problem will get worse. The Local Government (Community Well-being) Amendment Bill will expand the role of local government "to promote the social, economic, environmental, and cultural well-being of communities", give territorial authorities power to collect development contributions for any public amenities needed because of development, and modify the development contributions powers.

The Productivity Commission is to identify how local government can fund its activities more effectively and fairly.

Options being considered include fuel taxes, tourist levies and GST sharing, as well as public-private partnerships for big infrastructure projects.

Whatever the advice from the Productivity Commission, and the requirements and powers allocated by the new Act, it will be the responsibility of the incoming council in October 2019 to fundamentally rethink its priorities and financing strategies.

And how to manage its inherited $206m debt. It will bring tears to the eyes of our mokopuna.

Reynold Macpherson
Rotorua

'Meddling' questions

Tracey McLeod writes (Letters, July 14) to defend Dr Reynold Macpherson over the costs that he has incurred for our city with what is, in my opinion, needless and vexatious investigations as a self-appointed whistleblower.

In my opinion, Macpherson is far from asking the hard questions, as McLeod claims.

I would describe his questions as being, at best, meddling and trivial, often hidden under the guise of importance by attaching labels such as the Official Information Act upon them.

I agree with McLeod when she writes about accountability.

Macpherson should account for his questioning of our council, questioning that will always incur costs and work, and which, to date, I can see have had no effect on the progress or direction of our city at all. (Abridged)

John Pakes
Ngongotaha

Pensioner units

I just learned by accident about Rotorua Lakes Council's latest proposal to hand pensioners' units, paid for by our rates and fundraising and occupied by people with the lowest income, to Habitat For Humanity.

Shame on them. The idea was not widely published.

Obviously even the council realised that this proposal will shock our caring community.

Why is the council, in my view, trying so hard to be unpopular? (Abridged)

Harry Brasser
Rotorua