Have your say on borrowing levels
Matamata-Piako District Council rates pay many day-to-day services for the community.
The council also borrows money for big ticket items such as water and wastewater treatment plants. Borrowing money over a long period means that people who will benefit from the service in the future also pay their share.
If the council funded these projects with cash (from rates instead of borrowing the money), rate increases would fluctuate significantly.
Your rates increase each time the council borrows money to pay the interest and loan repayments but borrowing the money means rates fluctuate less from year to year.
Matamata-Piako District Council’s reach $44 million this financial year.
This money has been borrowed over time to pay for vital services when they have needed to be replaced and the council plans to continue borrowing money for projects like these in the future.
This level of borrowing is still well below industry limits recommended by independent financial advisers. It is also comparable to other similarsized local authorities.
The council will be asking for feedback on rates and debt levels next month (along with other matters) in a document called Have Your Say – Decisions for the future of our community.
Decisions based on your feedback will help shape the community’s debt and rates for the next 10 years.