More debt equals more rates

The Long Term Plan of Tauranga City Council initially proposed that by 2028 total ratepayer debt would increase from around $350m to $983m, a 280 per cent increase. Rates were planned to increase about 225 per cent in the same 10-year period.

After a huge response from the public, all duly and properly considered after most-likely much ‘teeth-grinding' and machinations of biblical proportions, our beloved, astute TCC councillors have simply shuffled the chairs around and now the debt is planned to be some $1.05 billion by 2028.

Obviously TCC councillors have carefully considered the folly and consequences of excessive spending/borrowing very carefully, and just do it anyway.

There are some serious concerns resulting from this. Firstly, interest rates are very low and won't stay where they are now. Secondly, there's no plan to repay the debt. Thirdly, it's based on an expectation that massive building fees/revenue will continue. On all counts history says otherwise!

Sadly for TCC ratepayers, once the money is borrowed and spent all you have left is the debt and interest to pay – there's no escape from the recklessness before. The only way out is massive rates, more rates and higher rates. If you don't believe, look at Kaipara District Council – first year debt doubled rates doubled!

I Stevenson, Tauranga.

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