Council not collecting enough money
By local democracy reporter Brendon McMahon:
The West Coast Regional Council is being warned it is not collecting enough money from rates, and will need to consider using its investments again to subsidise rates.
The council's financial manager raised the matter as it received a report on its investment portfolio at a Risk and Assurance Committee meeting on February 20.
Committee chairperson Frank Dooley said fund manager JB Were had advised "a cautious stance" over divesting its portfolio.
Acting corporate services manager Aaron Prendergast said the draft long-term plan suggested using funds generated from this portfolio to reduce rates.
The council was "under rating".
"It is timely for some of those decisions around how the portfolio operates," he said.
Dooley said the council's rates income should generate debate again this year.
He repeated his previous stance that council could not afford to keep rates down if it were to meet its statutory responsibilities.
"This council has under rated for a number of years, and as a result we have accumulated a number of deficits," he said.
"As we go through the LTP consultation phase I think this is something that will be … debated quite rigorously."
That included the role of the investment portfolio and rates income, Dooley said.
The ouncil's investment fund closed for the six months to December 31 at just over $13 million, $431,484 higher from July 1 ($12.57m).
Its catastrophe fund sat at $495,817 while awaiting the $1m previously spent in Westport in 2022.
According to the investment report, the council owes $11.4m via the Local Government Funding Agency, and nearly $2m under a 'multi-option credit loan' with Westpac.
Prendergast said the council needed to weigh up its investment and its capacity to use that to subsidise rates increases.
"I think the quantum if we were to reinvest as opposed to subsidise rates is about $1 million a year," he said.
Councillor Brett Cummings said council had previously used investment income to subsidise rates income, but this saw the investment fund growth rate slowly decrease.
Subsequently, the council chose to build up the main fund again, with the last withdrawal in 2021.
Dooley was the sole dissenter against the 2023-24 increase of 16.4%, saying it needed to be much higher.
Meantime, some ratepayers are still unclear what their total 2023-24 rates bills will be.
Poll: Should we be giving the green light to new mining projects? 💰🌲
The Environmental Protection Authority announced this week that a proposed mine in Central Otago (near Cromwell) is about to enter its fast-track assessment process. A final decision could come within six months, and if it’s approved, construction might start as early as mid-2026.
We want to know: Should mining projects like this move ahead?
Keen to dig deeper? Mike White has the scoop.
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53.1% Yes
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46.9% No
‘Tis the season to not get scammed ...
As Christmas gift shopping moves increasingly online, scammers are ramping up their activity across the country.
Dunedin’s Investigation Support Unit is seeing more and more people fall victim to scams and other fraudulent activity, particularly on Facebook Marketplace.
There are a few ways to avoid the scams and keep yourself safe doing online trades this holiday season, says Southern District Service Delivery Manager Senior Sergeant Dalton.
🔒 “A good first step when looking to purchase something on Marketplace is to check when the seller’s Facebook profile was created. If it’s very recent, there is a higher risk that they have just created this account for a one-off fake item.”
🔒 Another important step is to make sure the seller’s profile name and bank account name match up. “We’re seeing a lot of scammers claiming their bank account name is different because it belongs to their partner or family member - that’s a huge red flag."
🔒 “When you’re selling, never trust a screenshot anyone sends you showing that payment has been made. Check your own bank account to make sure a payment has gone through."
🔒 “Quite frankly, it’s best for all parties to agree to pay, or be paid, for items in cash and in-person. Ideally in a public place with CCTV coverage."
🔒 "If you’re buying a car, check Carjam.co.nz to see if it’s stolen or if there’s money owed on it.”
A reminder: Suspicious activity can be reported on 105
🚧 Big upgrades are on the way for Haast!
Motorists travelling on SH6 near Haast should be ready for some delays, with $5 million worth of work kicking off on important improvements to the highway.
The Gates of Haast Gorge bridge, which connects the 140km journey between Haast and Wānaka, is a crucial link — especially for locals and visitors heading to the West Coast glaciers.
A bit of patience now for safer, stronger roads ahead! 💛
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