INDEPENDENT NEWS

Council Will Use Asset Sale To Reduce Debt

Published: Sat 6 Apr 2024 06:35 AM
04 April
Proceeds from sale of a house in Ruawai are to be used to reduce debt after elected members rescinded a decision they made in December to use the money for capital projects within the Raupo drainage scheme.
The property at 16 Ruawai Wharf Road was acquired by the Raupo Drainage Board (the Committee) in the late 1970s, prior to local government reorganisation in 1989. All Board assets were transferred to Kaipara District Council ownership when the Raupo Drainage Board was amalgamated with local Councils in 1989.
At their December meeting, Council agreed to the Committee’s recommendation that the property be sold and net proceeds, expected to be in the order of $350,000, be allocated to capital projects within the drainage scheme.
In rescinding the decision, Mayor Craig Jepson drew attention to the Council’s Treasury Policy, which says funds from all asset sales will be applied to the reduction of debt unless Council specifically directs that the funds will be put to another use.
“We need to stick to Council’s own Treasury Policy and not set a precedent,” says Mayor Jepson.
If the proceeds from sale were used to repay debt, Council’s interest payments are estimated to reduce by approximately $17,500 per year.
“We’re working through this LTP to save every dollar we can. It all adds up.”
“We’re inviting community ideas on further savings we might make through the LTP consultation process.”
“We will continue to support the wonderful work done by the Raupo Drainage Committee however and whenever we can through the right avenues, particularly through external funding that may become available.”
Consultation is now open on the Council’s Long Term Plan 2024-2027. The Plan sets the Council’s direction for the next three years and the activities proposed to get us there. Comment is invited on any aspect on the Council’s proposed plans, including the source documents, and is open until 4 May 2024. Find the Consultation document online at kaipara.govt.nz or at your local library.
View the Council Meeting discussion and decision on the Kaipara District Council YouTube channel (1:59: minutes in).

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