We are required to be professional in the way we run the business of looking after the district. We have to do our research, so we can plan efficiently for the future and take into account modern principles in all the different kinds of work we do.
We are required to gather enough money from the sources we can, to do the work we have planned, but not enough to make a profit.
We are also required to report back formally on how we have gathered our income, how we took guidance from the community, and how well we achieved what we said we would.
Here are some of the principles we follow
The money we receive to run our District for our communities comes from many sources:
- General Rates
- Targeted Rates
- NZTA subsidies
- Rental Income from Investment properties
- User charges
- Development contributions
Rates are a land tax that property owners pay, and they are our greatest source of the funding we use to run the District. It is like a “kitty”, a pool of money that every property owner in the district contributes to. The amount of General Rates each ratepayer contributes depends on the land value of their property.
Sometimes we borrow to complete some jobs. We make sure that the size of the loans and repayments are manageable. That’s part of being sensible with money. We belong to a group of Councils that can access low rates of interest (the Local Government Funding Agency), and we have an excellent credit rating with international credit rating agency Standard and Poors.
Borrowing evens out the costs of the things we all enjoy across generations of ratepayers and residents. It means we don’t get some people paying a lot of cash for things they don’t get to use in their lifetimes, while others who come later get to enjoy them at no cost. It ensures this generation pays a share, as did the one before it, and the one that will follow it.
We also get subsidies and grants from government, we charge fees for some of our services, we receive contributions from developers, we earn interest, and we make money when we sell assets. All of these sources of income help us to run the District.