QUESTION.
The most marked demonstration of the toxic nature of the underlying consequences underpinning this mortgage holiday, is the massively disproportionate shift in the share of the funding burden that is shunted onto ratepayer shoulders.
A fundamental rating principle exists that a maximum of only 50% of council's total revenue needs should be raised through rating.
That principle was again confirmed by the recent commission of inquiry into rates. In fact the commission went further and strongly recommended that, that 50% limit, should be reduced even beyond that point.
However this mortgage holiday requires quite the opposite, and the 50% funding limit massively blows out to in excess of 65%.
The word massive is used because that increase is a geometric increase rather than a simple arithmetic increase. Thus the increase is a compounding multiplier, which is in reality, a hugely disproportionate and exponential shift in the funding burden.
What advice has this lay council sought or received as to the sustainability, affordability, prudence, and the many other effects of that magnitude of a shift in the funding burden.
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.