Waimakariri Council Says Quake Loan Being Paid Off

Thursday, 2 October 2025, 5:43 pm
Article: David Hill - Local Democracy Reporter

Waimakariri’s mayor has called on his opponent to stop ‘‘cherry-picking’’ items from the council’s budget. 

Mayoral candidate Paul Williams says the council’s earthquake loan is not getting repaid, which is proof the debt is ‘‘out of control’’. 

But Mayor Dan Gordon said the council had managed its finances to get through Covid and a period of high inflation with ‘‘rates increases among the lowest in New Zealand’’. 

This year’s average rate rise was 4.98 percent. Mr Williams, a sitting councillor, cited an official information letter received from council staff, dated September 8, which showed the earthquake loan balance was $49.96m. 

He claimed on social media that the council had ‘‘only been paying interest, not principal’’ and had even borrowed to pay interest. 

But information provided by staff showed the council had repaid around $5.7m over the last five years, despite a decision to defer some repayments due to Covid and high inflation. 

‘‘Instead of cherry-picking budget lines, let’s look at the facts,’’ Mr Gordon said. 

‘‘The council manages $2.8 billion in community assets, runs the district on $165m a year, carries $210m in debt, and holds $2.6 billion in equity (as of June 30). 

‘‘Residents expect safe drinking water, reliable roads, rubbish collection, sports and community recreational facilities, walkways, bike tracks, libraries, playgrounds, and vibrant town centres.’’ 

Council staff said the cost of the earthquake rebuild was $127.3m, which was funded through a mix of Government subsidies, insurance and debt funding. 

During the Covid-19 lockdown in 2020, the council, including Cr Williams, voted to defer loan repayments to ‘‘provide relief to ratepayers, so some interest costs have been added to the loan balance’’, a council spokesperson said. 

It allowed the council to present a 1.5% average rate rise in the 2020/21 annual plan. 

At June 2020, the earthquake loan was $55.7m, but had reduced to $49.96m as at June this year, a council spokesperson said. 

The earthquake loan is now forecast to be repaid by June 2044, the spokesperson said. 

As at June this year, the council’s total debt was $210m, which includes around $24.6m for roads and footpaths, around $70m for water services, and around $43m for recreation facilities (including MainPower Stadium). 

Interest payments of $1m a month or $30,000 a day, equates to $1 a day per ratepayer or $365 a year across around 30,000 ratepayers. 

-LDR is local body journalism co-funded by RNZ and NZ On Air.

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