Surplus to be spent paying debt

The New Plymouth Mayor’s casting vote was needed to decide whether a council surplus went on paying debt or diaster relief.

The New Plymouth District Council has a surplus from the 2016/17 financial year of $600,000.

And at the council meeting on Tuesday night councillors were split on how to spend it - pay it off against the $110million of debt or put it into the disaster relief fund.

The disaster relief fund is to help blunt the impact of extreme weather events and other disasters on ratepayers. After a storm in 2015 $750,000 was taken from the fund. It now has a balance of $700,000.

Those who voted for paying off debt said if there was a disaster the council could call an extraordinary meeting and look for some funds from the council’s reserves.

Deputy mayor Richard Jordan said funding for the disaster relief fund should be allocated during the long term plan process.

‘‘We’re talking about this as if it was monopoly money. It’s ratepayer funds. Do not take ratepayers’ funds and spend it on something else. It’s not your money.’’

Councillor Gordon Brown agreed. ‘‘Put simply we have a lot of debt and any surplus should be applied to that.’’

Councillor Richard Handley said the money should go where it was most useful. ‘‘The disaster relief fund needs filling up.’’

Councillor John Williams said the council should provide for a rainy day and the $600,000 was ‘‘chicken feed’’ against the $110m debt.

As the council was split Holdom used his casting vote and went for paying off debt. ‘‘We should pay it off, the debt.’’ - Helen Harvey

"Put simply we have a lot of debt and any surplus should be applied to that."

Gordon Brown