OPINION: Hamilton City Council’s Credit Downgrade Not a Surprise
By Rob Pascoe (Chartered Accountant, Former Hamilton City Councillor, and Hamilton Ratepayer) Some...
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City councils across New Zealand are deep in debt. Rates increases are also expected in most of New Zealand’s cities.
Have councils been failing to invest in maintaining infrastructure for core services?
Are councils mismanaging both the assets and liabilities on their books?
Are councils being transparent with the public about their financial situations and what caused those financial situations to develop?
According to an Infometrics article in 2019,
“Gross debt levels in councils continues to increase as population pressures, tourism growth, and aging infrastructure come together to form a perfect storm.”
A council’s debt is often expressed as Gross debt ratio based on debt/revenue or total liabilities as a percentage of operating income.
According to Newsroom, the Local Government Funding Agency (LGFA) voted in 2020 to “temporary increase of council debt caps” to 300% of revenue; an increase from the earlier debt cap set at 250% of revenue.
“High growth councils like Auckland, Hamilton, and Tauranga were already within spitting distance of debt limits before Covid-19 as runaway population growth required them to make major upfront investments in infrastructure.”
Dileepa Fonseka, Newsroom
[Last updated 25/11/2023]
By Rob Pascoe (Chartered Accountant, Former Hamilton City Councillor, and Hamilton Ratepayer) Some...
By Rob Pascoe (Chartered Accountant, Former Hamilton City Councillor, and Hamilton Ratepayer) Some...
The government is allowing debt to rise to 500% of waters revenue for new “Local Water Done Well” Council Controlled Organisations (CCOs). There are also plans to increase the borrowing limit for high growth councils to 350% of council revenue.
May 15, 2024 | Article, Consultation, Council Finances, Council Funding, Council Spending, Hamilton City, News, Official Information Act, Open letter, Opinion, Parks and Reserves, Rates Increases, Taking Action
On 15 May 2024, Colin Jones presented to Hamilton City Council about the Long-Term Plan. Video of...
Aug 27, 2024 | Auckland City, Contractors, Core Services, Council Debt, Council Finances, Council Funding, Council Meetings, Council Spending, Hamilton City, Incoming Legislation, Law and Legislation, LGNZ, Local Government Reform, New Zealand Issues, News, Opinion, Professional Managerial Class, Rates Increases, Three Waters, Transport and Roading, Wellington City
Sep 16, 2024 | Council Debt, Council Finances, Council Meetings, Hamilton City, Incoming Legislation, Law and Legislation, LGFA, New Zealand Issues, News, Opinion, Rates Increases, Three Waters
The government is allowing debt to rise to 500% of waters revenue for new “Local Water Done Well” Council Controlled Organisations (CCOs). There are also plans to increase the borrowing limit for high growth councils to 350% of council revenue.
Sep 2, 2024 | Article, Cities, Code of Conduct complaints, Core Services, Council Debt, Council Finances, Council Funding, Council Meetings, Council Spending, Freedom of Expression, Incoming Legislation, Law and Legislation, LGNZ, Local Government Reform, New Zealand Issues, News, Opinion, Overview, Professional Managerial Class, Rates Increases, Regions, Three Waters, Transport and Roading, Wellington City
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Aug 27, 2024 | Auckland City, Contractors, Core Services, Council Debt, Council Finances, Council Funding, Council Meetings, Council Spending, Hamilton City, Incoming Legislation, Law and Legislation, LGNZ, Local Government Reform, New Zealand Issues, News, Opinion, Professional Managerial Class, Rates Increases, Three Waters, Transport and Roading, Wellington City