Council debt $825 per ratepayer

Ruapehu Bulletin, Volume 11, Issue 503, 14 September 1993, Page 5

Council debt $825 per ratepayer

The Ruapehu District Council's working capital and liquidity are below the median for "small sized" councils in New Zealand, while its short term financial condition is adequate. And the council's high level of long term debt in comparison to the national median emphasises the need for the council to develop its long term financial planning. That summary is part of the Audit New Zealand report on the Ruapehu District Council which is to be presented to councillors on Friday. The report shows that the council's debt per rateable property dropped from $850 in 1991 to $825 in 1992. That debt per person dropped from $335 in 1991 to $345 in 1992. Commentine on theretx>rt, corporate services director Chris Ryan said

the council was "already well embarked" on the "application of a sound and careful management treatment over a significant period of time". This would be necessary to address both the need for adequate working capital and liquidity, and the high level of long term debt. Mr Ryan said the report assumed all councils started after amalgamation from the same point, whereas Ruapehu District inherited a financial position which was worse than most. "To then make a comparison and evaluation of this council's financial condition with its peers, without considering the pre-existing financial condition of the amalgamating local authorities ... must call into question the worth of the results," he stated.