Among the most reckless and disastrous side effects of the Nelson City councils proposed LTCCP Holiday from Hell, is the massive imbalance it wreaks on ratepayers.
One of the most fundamental indicators of proper and prudent governance that can be found in any council plan is the balance between income derived from compulsory rates, versus all other non rateable income.
That other income is major funding derived from sources such as, local bodies fuel tax, central funding of roads and other government plans, policies and social initiatives; council charges, development contributions, consent and permit charges, and fines income from legislative infringements, etc, ad infinitum.
There is a fundamental administrative principle that income from rates should not exceed 50% of councils total income, and the recent commission of enquiry into rates reconfirmed that principle and went even further stating that councils should be actively working to reduce that rates percentage to well below the 50% mark.
As there is a geometric progression involved in shifting that ratio, the next 1% shift takes a progressive doubling of the previous shift, to achieve the next step.
It is therefore staggering that this LTCCP proposes to increase that rates ratio by stretching it out from around the 50% mark, to around a mind boggling 66%, and because of that geometric progression, that is a massive blow out, and exponential shift of the funding burden, onto the ratepayers shoulders.
That shift is an abuse of the power to levy, and is simply unacceptable. If that shift of the funding burden is a knowing shift, then it is nothing other than a reckless rort, but if on the other hand, it is an unknowing shift born of council ignorance then it is simply incompetent.
If there is any symptom that reveals the agressive cancer of this councils financial objectives, it is this shift in the rates burden ratio, which is so untenable and unaffordable, that it cannot be allowed to survive. This LTCCP must go.
Unfortunately there are even worse effects of this Holiday from Hell yet to be revealed and they will be addressed next.
About Me
- pinocchio
- This blogspot is born out of a deep democratic concern about the continual political spin and the outright manipulation and suppression of information by local government and local media. In my view that rampant disinformation has become so extreme that it can only be considered grossly deceptive. This blogspot attempts to provide some balancing transparency to that situation. Hopefully it might even help keep the "buggers" honest.