19 August 2013

Smoke and Mirrors accounting seen as a desperate ploy

Kapiti Coast District Council’s debt level is now so high that valuing land under the district’s roads may be seen as a desperate ploy to avoid bankruptcy says leading mayoral candidate Jackie Elliott”

“I appealed to the Corporate Business Committee last Thursday against the proposal on the agenda, that Council value the land to add a potential $300million to the debt/asset ratio. The public are not going to wear this smoke and mirrors accounting. They will see it as a vehicle with which you will borrow more money,” Ms Elliott told the meeting.

Under the KCDC proposal the land under roads would be revalued from $200million up to $500million.

Councillors requested that the decision be deferred until after the election, or until they had a definitive reply from LGNZ and the Auditors Office, however Senior Manager Warwick Read and CEO Pat Dougherty expressed no desire to wait for any outside clarification. With Mr Dougherty suggesting it could take LGNZ years to even answer their letter and formulate a policy.

Cr Lester, said he wanted KCDC to follow ‘best accounting practices’, and that this was standard practice for Councils.

“They chose to use commercial rates. So they believe the land under our roads is worth the same as any prime piece of commercial land for sale on the Kapiti Coast. I have seen some appalling decisions made by this Council over this triennium, but in my opinion this one takes the cake,” says Ms Elliott.

ENDS

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