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Mayor factually wrong on debt

AUTHOR Frank Newman DATE 07 Oct 2019

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In Saturday's Northern Advocate (5 October 2019) Mayor Mai makes comments about the council's debt position that are untrue.

She said, "With a Standard and Poor's rating of AA+, council is in great shape to borrow more if necessary". The council's credit rating is, in fact, AA, not AA+ (as reported at last months Finance and Corporate Committee meeting). So clearly, the council is in not such great shape as the Mai says.

Mayor Mai also said council's debt is "now $142m, saving ratepayers millions in interest every year".  Council pays interest on total debt of $216m. That is the true debt figure when borrowing from council reserves is taken into account.

This is clearly evident in the council's Long-Term Plan 2018-28 (pages 93-95) which shows debt rising significantly in the next term of council and peaking at $253m n the 2025/26 year. That's what people will be voting for if they vote for Mayor Mai.

Comments

Peter Peeters:

DATE: 07 Oct 2019 - 08:47 AM

Voters need to be made aware of this. With the projected debt peaking at $253,000 in 2025-2026 year our rates will only increase more to repay this. Time to see the existing mayor off - vote for change vote Tony Savage.


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