Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Council future proofs credit


23 October 2008

Council future proofs credit

Recognition more than a year ago of the potential for national and international credit problems resulted in the Kapiti Coast District Council having the foresight to arrange access to a $45 million line of credit to draw on if required.

This is at fixed margins for a period of three to six years.

The Government guarantee for all banks and finance company deposits excludes local authority investments. Councils which rely on the financial markets to fund their capital works programme as required, rather than making formal arrangements to future proof their liquidity, are finding it harder to obtain credit from banks.

“We recognised the potential for this to happen some time ago and looked at ways to future proof our situation,” Group Manager Finance Warwick Read told a Long Term Council Community Plan workshop yesterday.

Several issues face all local authorities regarding funding of the activities desired by their communities. These are the affordability of rates, the availability of credit and the cost of credit.

The Kapiti Coast District Council has already advised its community of increases in rates in the future as a result of the impacts of capital works being completed this year and the construction of the Western Link Road and the Aquatic and Recreational Centre, expected to start in 2009.

“In Council’s first workshop on the Long Term Council Community Plan (LTCCP) process we made it clear that cost increases are unlikely to be approved to go into the LTCCP for debate by the community unless a clear need and benefit can be identified,” Mayor Jenny Rowan said..

Council’s credit arrangements are at attractive rates and will enable the Council to continue with the capital works programmes scheduled for the next 18 months.

“The prudent management of Council’s funding means this Council is not exposed to the same liquidity problems faced by other local authorities which are more exposed to the financial markets,” Mayor Rowan said.

ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Populism’s Changing Of The Guard, Plus A Soul Music Playlist

The weekend’s Newshub/Reid Research poll results - Act up to 11.1%, National up 1% but still sitting at only 28.7%, Labour down to 43%, the Greens up to 8.5% - shows that the combined centre right vote is still languishing nearly 12 points behind the combined centre-left vote, 45 months after the last centre-right government was voted out... More>>



 
 


Finance: Finance Minister And RBNZ Governor Agree To Update MOU On Macro-prudential Policy

Finance Minister Grant Robertson and Reserve Bank Governor Adrian Orr have updated the Memorandum of Understanding (MoU) on macro-prudential policy to further protect the financial system and support the Government’s housing objectives... More>>

Government: Offers Formal Apology For Dawn Raids
Prime Minister Jacinda Ardern has today formally apologised to Pacific communities impacted by the Dawn Raids in the 1970s.

Between 1974 and 1976, a series of rigorous immigration policies were carried out that resulted in targeted raids on the homes of Pacific families... More>>


Government: Bill Introduced To Protect Against Conversion Practices

Legislation has been introduced to Parliament to protect against practices intended to change or suppress someone’s sexual orientation, gender identity, or gender expression... More>>

ALSO:




Human Rights Commission: Successive Governments Responsible For Massive Breaches Of The Right To A Decent Home

Te Kahu Tika Tangata / Human Rights Commission has today launched Framework Guidelines on the Right to a Decent Home in Aotearoa and announced that it will hold a national inquiry into housing... More>>



NZUS Council: Welcomes Nomination Of Senator Tom Udall As US Ambassador To NZ

The NZUS Council welcomes the nomination of Senator Tom Udall to the role of US Ambassador to New Zealand and Samoa, NZUS Council executive director Jordan Small said... More>>

BusinessNZ: Visa Extensions Welcomed
BusinessNZ has welcomed the extension of some critical skill visa durations and changes to immigration systems to speed processing. Chief Executive Kirk Hope says move acknowledges advocacy by the hospitality sector, the BusinessNZ Network and others, and comes not a moment too soon.... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels