Financial Policies
LIABILITY MANAGEMENT POLICY
This policy outlines how the council manages its liabilities, with particular reference to its borrowing.
The key parts of the policy are:
- Gross annual interest costs will not exceed 15% of total operating revenue
- Gross annual interest costs will not exceed 20% of total rates revenue
Repayment of loans will be spread of the shorter of the life of the funded asset or 20 years.
The debt profile will be managed so that no more than 25% of loan debt matures in any one given year.
For the complete Liability Management policy.
INVESTMENT POLICY
This policy outlines how the council manages its investments, with particular reference to its financial as distinct from property investments. It is a very conservative policy, as is appropriate when handling public funds.
The key parts of the policy are:
Financial investments are limited to government and local body stock and debentures, major banks and SOEs.
- Fixed rate investments will form 50% to 90% of the total.
- Returns are benchmarked against the 90-day bill rate.
The only shares owned by the council are in New Zealand Local Government Insurance Corporation Limited. The purchase of any other shares would require a specific Council resolution. No share acquisitions are envisaged in the LTCCP.
For the complete Investment policy
PARTNERSHIP POLICY
This policy outlines the conditions under which the council would enter into a business partnership with the private sector, other than for the purchase of goods and services
The policy headings are:
- Circumstances
- Consultation
- Conditions
- Risk
- Monitoring and reporting
For the complete Partnerships
RATES REMISSION POLICY
This policy outlines the circumstances under which Council will consider granting a partial or total remission of rates.
The objectives of the policy are
- To support ratepayers whose activities promote the Council’s vision, goals and strategies for the community:
- To support fairness and efficiency in the rating system.
- The policy provides for the following classes of remissions
- Community groups
- Voluntarily protected land (e.g. QE11 covenants)
- Penalties for late payment
- Excessive water charges caused by leaks
- Remnants of land
- Residential properties in industrial or commercial areas
- Small rate balances
Properties affected by natural disasters (where central government provides funding for rating relief) – notes that the details of this policy are not available on this web site yet but are available on request.
Maori freehold land (see separate policy statement)
Under this policy a remission will generally only apply to general rates, and not to targeted rates for water, sewer and solid waste services
For the complete Rates Remission policy
REMISSION OF RATES ON MAORI LAND
This policy outlines the circumstances under which Council will consider granting a partial or total remission of rates on Maori freehold land.
The policy recognizes that certain Maori-owned lands have particular conditions, features, ownership structures or other circumstances that may make it appropriate to provide relief from rates.
The policy provides for:
- General remissions where the land might be, for example, unoccupied, not generating income, and better used for purposes other than economic; and
- Economic adjustment remissions where, for example, a temporary remission would release funds for the economic development of the land.
It is important to appreciate that the term "Maori freehold land" has a particular definition under rating legislation, and does not apply to land merely because it is owned by Maori.
For the complete Remission of Rates on Maori Freehold land policy.
RATES POSTPONEMENT POLICY
The Council does not have a rates postponement policy.