Christmas comes early: NPDC’s PIF powers over $300m mark
New Plymouth District ratepayers will have 300 million reasons to have a happy holiday season this year, thanks to NPDC’s investment fund which helps offset rates.
The Perpetual Investment Fund (PIF) topped $300 million for the first time since the Global Financial Crisis of 2007-8, hitting a total of about $304.5 million in December, up from $299.95 million the month before.
NPDC created the Perpetual Investment Fund (PIF) and TIML (Taranaki Investment Management Limited) in 2004 with the $259.4 million proceeds from the sale of its shareholding in Powerco.
“This financial year alone the PIF will inject almost $9 million into NPDC’s budget to help keep rates affordable as we Build New Zealand’s Lifestyle Capital,” says New Plymouth District Mayor Neil Holdom.
“The PIF underpins our strong financial performance and has been safeguarded by a release payment policy ensuring the benefits of this community asset are spread across both current and future generations of New Plymouth District residents,” he says.
International ratings agency Standard and Poor’s in September confirmed NPDC’s rating of AA/A-1+, the highest possible rating for local government in New Zealand, saying the level was enhanced by the PIF.
NPDC manages assets worth $3.3 billion, runs 17 different operational units and has an annual budget of about $155 million.
PIF fast facts
• The PIF has paid NPDC a total of $212.8 million since 2004, including $8.6 million in the last financial year.
• This financial year, the PIF will pay NPDC $8.8 million.
• NPDC created the Perpetual Investment Fund (PIF) and TIML (Taranaki Investment Management Limited) in 2004 with the $259.4 million proceeds from the sale of its shareholding in Powerco.
• TIML was a Council-Controlled Organisation.
• This became the New Plymouth PIF Guardians Limited (NPG) and remains a 100% CCO.
• In 2017, the management of the PIF was outsourced to Mercer.