Ex­ces­sive spend­ing

Kapi-Mana News - - OPINION -

Gary Simp­son, the Porirua City Coun­cil chief ex­ec­u­tive, ad­vised (July 29) the coun­cil only bor­rows to fund in­fra­struc­ture re­newals such as roads, pipes and waste­water treat­ment.

If bor­row­ings are used only to fund new and re­place­ment in­fra­struc­ture, rates must have been used to fund the coun­cil’s (ratepay­ers’) pur­chase of land and build­ings in the city cen­tre, which are to be de­mol­ished for the re­de­vel­op­ment.

Ev­ery dol­lar of rates and other in­come spent on buy­ing land and build­ings, mar­ket­ing Porirua, vis­it­ing over­seas sis­ter ci­ties, etc, is a dol­lar less for in­fra­struc­ture re­pairs and main­te­nance, and part of a dol­lar more for fund­ing costs, other costs, and rev­enue lost.

The coun­cil only needs to bor­row at all be­cause rates and other in­come is be­ing used for pur­poses other than in­fra­struc­ture/core ser­vices.

Even with rates in­creases con­sis­tently above in­fla­tion/cost of liv­ing move­ments, and enor­mous de­ferred main­te­nance on roads, stormwa­ter, sew­er­age, wa­ter and build­ings, the coun­cil was still un­able to avoid record­ing an op­er­at­ing deficit last year.

Wel­come to the fu­ture of dou­ble

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