‘Tauranga doesn’t need more debt!’ - borrowing limit increased for Tauranga City Council

The Local Government Funding Agency (LGFA) has increased the borrowing limit for Tauranga City Council from 2.8 times revenue, to 3.5 times revenue.

Taxpayers’ Union Campaigns Manager for Local Government, Sam Warren, responded:

“If you need to borrow 350 percent of your income, you don’t have a revenue problem, you have a spending problem.”

“Mayor Drysdale’s assurance that the limit won’t be touched ‘for now’ doesn’t inspire confidence. Sooner or later, it will be. What steps are being taken to avoid more borrowing and to reduce debt for ratepayers?”

"More to the point, why can't Council live within its means under the current borrowing limit by cutting expenditure on items that aren't essential infrastructure?"

“Tauranga’s growth puts pressure on infrastructure—that’s exactly why the LGFA’s debt limit exists. Loosening the belt on debt isn’t good policy, it’s kicking the can down a very expensive road that ratepayers will eventually need to pay for.”