Gisborne District Council decisions

Thursday 28 June 2012

Adoption of the 2012-22 Ten Year Plan

Gisborne District Council’s 2012-22 Ten Year Plan was adopted with the unanimous support of all Councillors. This marks the beginning of a new phase delivering the many projects outlined in the plan. It will be Council’s blueprint to move the district forward by redeveloping our important community facilities.

The Ten Year Plan proposes an average annual rates increase of 4% over the term of the plan and Council proposes to collect 4.4% more rates in the first year (2012/13). Council’s debt is forecast at $36m in 2013 and is expected to peak at $40m in 2014 and 2015.

Gambling (Gambling Harm Reduction) Amendment Bill

The aim of this bill is to enable councils, in consultation with their communities, to reduce the number of pokies where they are concentrated or doing harm. The bill also changes the responsibility for distributing pokie funds from corporate societies to a special committee of a council.

Local Government New Zealand (LGNZ) has prepared a submission on the Bill. The submission supports the aim of the bill, does not believe the proposed amendments will achieve their purpose. It also suggests that the costs to councils of complying with this proposed legislation will be high, with no ability to recover costs.

Decision

Council endorses the LGNZ submission on Gambling (Gambling Harm Reduction) Amendment Bill and in particular that administration costs incurred by council’s be covered from proceeds. Council recommends that full delegated authority be given to the committee to make final grant decisions. This would mean that Council’s could not amend or change grant decisions.

Local Government Funding Agency Proposal

The Local Government Funding Agency (LGFA) has been set up so that Councils can use their collective bargaining power to borrow money at lower interest rates than would otherwise be available to individual councils. The LGFA also allows councils easier access to long term borrowing.

Current Council debt is $32.5m. The benefits of lower interest rates are significant. The lowest interest rates (saving between 0.5% and 0.9%) are available for Principal Shareholders and the initial minimum investment is $100k.

Council consulted with the public on the LGFA through the 2012-2022 Ten Year Plan process. There was public support for joining the LGFA.

Decision

Council decided to join the Local Government Funding Agency Scheme as a Principal Shareholding Local Authority and the purchase of $100,000 of LGFA shares.

ends

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