Have your say on bor­row­ing lev­els

Matamata Chronicle - - News -

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.

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