more on Kapiti Coast District Council indebtedness

Waikanae Watch

We can only assume that the ‘net’ figure of $150 million is the $225 million borrowed from the LGFA less $75 million held by the council on deposit somewhere.  The sentence “Council does lend money to banks” indicates that it is not with a bank.  So, back on deposit with the LGFA then? And if so, at what interest rate?  It won’t be more than the average 4.58% quoted that the KCDC is paying.

When this issue was raised on the Kapiti Coast Group FB page a couple of months ago, a defender of the council said it made sense to borrow long term when interest rates are at their historic low.  However, this Treasury forecast (pdf) says there is more likely to be economic fall-off by 2020 and accordingly more potential for interest rate drops than increases.


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6 thoughts on “more on Kapiti Coast District Council indebtedness”

  1. Pam,

    Can you advice me on the question detail. I like to run the same thing for Palmerston North City Council and the MDC. As Palmy is increasingly secretive with their info and the MDC is not far behind that. Love to find out what excuses they come back with.

    Like

    1. We and our supporters have found that getting information out of the council can be like pulling teeth — either they don’t give you all the information they are asked for, or they give you a ‘parallel answer’ — extra detail that may be relevant but which doesn’t answer the question.
      Another problem is that the Local Government Official Information and Meetings Act in Section 7 gives them excuses not to answer. You can appeal this to the Ombudsman’s Office and a lot depends there on who the investigating officer is.
      The message is, just be persistent.

      Liked by 2 people

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