Federated Farmers Submission for Timaru District Council Long Term Plan
The Draft Plan continues to show Council’s apparent indifference to the effect that several years of cumulative rate increases, well above inflation levels, has on ratepayers’ discretionary spending powers.
It also signals a seemingly inexorable march to an untenable debt level. It is noted, from the funding impact statement, that debt level is not forecast to start decreasing until the sixth operative year of this plan. Until this decrease actually takes effect, it would be inappropriate to consider any borrowing for non-core activities. (We note that the 2015 Draft LTP estimated that total borrowings would reach $141 million in 2022-23. The current draft indicates that the figure will be closer to $158 million. Little cause for confidence that the suggested reductions will actually take place!).
In addition the plan discloses the intention to continue the recent development of extracting a disproportionately excessive portion of the general rate requirement from a small rate-payer sector.
Our submission reflects the above concerns in requesting a more restrained level of expenditure on non-essential activities; a greater degree of responsible financial management by balancing existing rate demands against the burgeoning loan liability and a more equitable share of contribution among rating categories.
See the full submission for our specific points