Finance Minister Willis warns councils to exercise spending restraint
Imagine knowing as a ratepayer what to allow for as a maximum rate increase each year, one that sits around the amount of inflation - at the moment just 2.2% - not the 19.45% some ratepayers experienced last year.
Imagine a Council not being able to increase rates based on whims individual Councillors have in Long Term Plans, and that they actually have to concentrate on living within an operating budget that has a capped amount it can increase by.
Imagine they have to deliver the infrastructure the city needs first, and if anything is left over from that, then other nice to have projects could be considered.
The Council would start to live in a world (like we do) that they need to keep within their budget and look at shedding unnecessary costs.
Imagine living in a world where ratepayers are not afraid of what might be in the next Long Term Plan, where the estimated budget will blow out, where rates increases will have to cover the extra costs due to inadequate budget preparation.
Imagine that we wouldn’t be ignored when saying no with Long Term Plans, as the Council wouldn’t have the capacity to put projects that aren’t supported by the community in the Long Term Plans in the first place, as the costs would go over the rate of inflation.
It is just possible that the tap of the NPDC money tree would be switched off.
Imagine …
Posted: Tue 28 Jan 2025