The paper, by Moritz Miersch, reports on the total liabilities incurred since the formation of the Super City and compares the same to Kaipara in 2012 when Government commissioners were appointed.
Ratepayers' Alliance spokesperson, Jo Holmes, says:
“Auckland Council now have $10.09 billion in liabilities. To put this in perspective, it’s around $20,000 the Council owes per Auckland household.”
“Despite record low interests rates, the Council's finance costs in 2014/15 amounted to $422 million. The Council's books are extremely vulnerable when the rates inevitably rise."
“Len Brown’s fiscal management has increased the credit card bill by 60% in the last 5 years and 15% in the last 12 months alone. It’s time the Council took responsibility for the tab it is leaving future generations.”
Click here to download a PDF of the Ratepayers' Briefing.
With debt at $20,000 per household Auckland now carries that mantle. It only takes a cost blow out, which is almost inevitable, in the CRL project to leave Auckland ratepayers facing 30-40% rates increases. In fact there could be a perfect storm of bad economic news on the way. Len Brown has been mortgaging the city’s future by borrowing against asset revaluations on the back of the Auckland property bubble – a bubble he himself has manufactured. Should the bubble burst and property values collapse, again an inevitability, it will be the hapless ratepayer who has to pick up the tab.
Brown has mortgaged the future of every Auckland ratepayer because, make no mistake, today’s higher debt is tomorrow’s higher rates. The property market bubble will burst, as all property bubbles do. Coupled with a cost blow out in the CRL the slow train wreck that is Len Brown’s Auckland is speeding up towards a spectacular crash.
Brown’s mismanagement of Auckland will cost us all dear. Kaipara’s mayor lamented that ‘council was never made aware of the enormity’ of the financial trouble his Council was in. Len Brown and his profligate Auckland Councillors will have no such excuse. Neither will ratepayers if they do not use their democratic power at next year's elections to rid us of Brown and the Terrible Ten responsible for bringing Auckland to the brink of bankruptcy. Let's hope its not too late.