It was an excellent result that the 2012 rates surplus was $3.7 million and well done to the councillors and staff for achieving such an outcome.
It should however be remembered that there was a certain amount of luck in achieving this outcome and this could quite easily change when interest and inflation rises, which in time they will. Just an increase of 1% in interest rates will add at least 4% to rates, being an increase of $72 on the average rate of $1,800, so caution is required.
Also more than likely reduced capital work will still have to undertaken at sometime in the future and should the city start to grow again I somehow suspect that once again staff costs will increase.
Taking this into account it is my view that the 2012 surplus achieved should either be entirely used to reduce city debt or alternatively, other than the agreed $500,000 debt reduction, be returned in full to ratepayers in the 2013 rate round so that 2013 rates are actually lower than they would have been.
It is quite unacceptable that it be considered that this surplus be placed in what has been fondly called the 'rainy day basket” as all that will achieve are Council schemes that will ensure that the money is spent.
It is time for the Council to show a responsible attitude towards this surplus as you can guarantee that if the 2012 result had been a deficit they would be ensuring that we paid for this, in the 2013 rate year.

Mike Baker, Bethlehem.