Rates challenges for local government

Hon Rodney Hide, Minister of Local Government
Friday, October 23 2009

Analysis of the 2009-19 Long Term Council Community Plans shows that New Zealanders are facing big increases in their rates bills, Local Government Minister Rodney Hide said today.

Analysis of the LTCCP data shows that councils’ operating costs will increase 39 per cent over the next 10 years. Over the same period councils' planned capital expenditure will total $31.4 billion, and total debt is forecast to rise to $10.8 billion.

"To help ratepayers stop their rates continuing to spiral out of control, the Government will soon announce changes to the Local Government Act 2002," Mr Hide said. "These changes have come from the review I set up to improve the transparency, accountability and financial management of local government.

"This work is about local government focussing on core functions, managing within a defined budget, and adopting transparent and accountable decision-making processes.

"In these challenging economic times councils need to think carefully about the impact of rates increases. There needs to be some serious thinking about the trade-offs between the services local communities want and what is an acceptable level of rates increases.

"The review is also looking at options to ensure local government operates within a defined budget, focuses on core activities and provides for ‘plain English’ financial disclosure."

The report, ‘Observations and Trends from 2009/19 LTCCPs’, is available at www.localcouncils.govt.nz.

ENDS

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