Larry. N. MitchellContact Details

Larry. N. MitchellLarry. N. MitchellFinance & Policy AnalystFinance & Policy Analyst (Local Government)(Local Government)

Presentation to the Rodney District “Combined Ratepayers”

meeting 3rd July 2004.The Rodney District Council’s

“Vital Statistics”

An assessment of the RDC, the criteria.

• Physical, geographic and demographic characteristics … ‘Size’

• Financial position and performance

• Governance

• The future

• Overall assessment

Size Characteristics

9

MeasuresAbsolute Value for

your CouncilYour Council Ranking out of 9

Councils

No of Significant Activities 6 7

Length of Roads 1671 2

No of Bridges 421 2

% Unsealed Roads 0.5 2

Area of District 2475 3

Capital Land Value 13424889 2

Ratepayers Numbers 39580 2

Population Growth 3.7 1

Population 84100 3

No of Dwellings 28536 3

Total Council Expenditure 80823 2

Operating Revenue 124204 1

Size characteristics.

• Item Value Ranking out of 9

• Ratepayers Equity 942931 2• Total Liabilities 1086124 2• Total Assets 1817484 2• Infrastructure Assets 787106 3• Rating Revenue 60418 1

(7a) Niceties as a percentage of Amenities

                 

 

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

                 

 

 

   

   

   

   

   

Niceties as a percentage of Amenities

   

   

   

   

   

   

   

   

   

     

Financial position and performance

(2) Debt per Capita( Current Liabilities + Term Liabilities / Population numbers )

R'dy Grp High 1,549 1,519 1,020 1,256 1,633R'dy Grp Low 250 237 176 424 299

Ranking 7/9 7/9 7/9 4/9 3/9

Debt per Capita

730 689 659

815

1,040

0

200

400

600

800

1,000

1,200

1999 2000 2001 2002 2003

$

Debt per Capita R'dy Grp Average Sector Average

(3) Debt per Ratepayer

( Current Liabilities + Term Liabilities / Ratepayer numbers )

                 

 

   

   

   

   

   

   

   

   

   

   

   

   

  R'dy Grp High 3,504 3,248 2,163 3,196 3,296  

  R'dy Grp Low 663 627 441 1,076 1,091  

  Ranking 7/9 7/9 7/9 5/9 4/9  

                 

 

Financial position and performance

(3) Debt per Ratepayer( Current Liabilities + Term Liabilities / Ratepayer numbers )

R'dy Grp High 3,504 3,248 2,163 3,196 3,296R'dy Grp Low 663 627 441 1,076 1,091

Ranking 7/9 7/9 7/9 5/9 4/9

Debt per Ratepayer

1,529 1,4651,341

1,740

2,209

0

500

1,000

1,500

2,000

2,500

1999 2000 2001 2002 2003

$

Debt per Ratepayer R'dy Grp Average Sector Average

Financial position and performance• (8b) Economic Factors

• Regional Economic Growth 28 Low

• Building Consents Average Movement 7 Very High

• Building Consents Current Change 6 Very High

• Workforce Unemployed 26 High

• Ratepayer Land Investment 8 High

• Ratepayer Capital Investment 9 High

• Ratepayer Land & Capital Investment 9 High

• Debt Capacity 11 Low

• Valuation Measure - No of Properties 3 Very High

• Valuation Measure - $ Value of Properties 31 Very Low

• Composite index of Economic Factors High

(8a) Income Factors Ranking Ability to Pay

Fixed Income Earners / Ratepayers 22 Neutral

Fixed Income Earners / Population 25 High

Household Expenditure 1 Very High

Variance in Household Expenditure 1 Very High

Household Income 6 Very High

Variance in Household Income 6 Very High

Composite index of Income Factors High

Governance(8) Ratepayers for each Council Member

Number of Ratepayers for each Council Member

R'dy Grp High 2,918 2,949 2,954 3,226 3,153R'dy Grp Low 1,169 1,169 1,200 1,206 1,139

Ranking 3/9 3/9 3/9 3/9 3/9

Ratepayers for each Council Member

2,710 2,756 2,881 2,922 3,045

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1999 2000 2001 2002 2003

Ratepayers for each Council Member R'dy Grp Average Sector Average

Governance

Governance

• How do others see us?

• A Commissioner appointed!

• Two financial divisions

• Biz New Zealand survey

• Federated Farmers 199 “Mugs Club” members

• Voter turn-out …Apathy or disillusionment?

Governance

• Staff levels 1995, 192 employees

• Staff levels 2004, 328 employees plus contracted “staff”.

• Cost-effective spending?, – District plan … $?M, – PENLINK $7 -$10M, – W’paroa sewerage scheme, $17M and – Plan change 62 …$?

• Playgrounds and front office?

The future

• Based on the adopted 2004-2014 LTCCP…

• It’s ‘full steam ahead on the Titanic’

• New vision, policies and abilities will be crucial to meet the challenges

• This election represents a watershed in RDC’s history.

• Crunch time has arrived!

RDC Debt per Ratepayer & Total Debt

2002

$168m in

total

$168m in

total$4200

per rate

payer

$4200 per rate

payer

2007

per ratepayer

in total

Prudent maximum debt per ratepayer - $ 1500

$41.5m in total$1121

per rate payer

37,000 rate

payers

40,000 rate

payers

RDC Debt Interest

2002 2007 2011

per ratepayer

in total

$2.4mtotal

$2.4mtotal$65

p/r

$65 p/r

37,000 ratepayers

$9.4mtotal

$9.4mtotal$235

p/r

$235 p/r

40,000 ratepayers

$14.6m total

$14.6m total$332

p/r

$332 p/r

44,000 ratepayers

Future Debt ratio’s

Overall assessment

• Huge challenges, mostly attributable to the nature of the district and its rate of growth

• The RDC could and must do much better

• Crunch time (now) involves the need for true community-based decision making

• So that we will leave our children and grandchildren with a District heritage of which we can justly be proud.

• Ref; www.kauriglen.co.nz ‘Mitch for Mayor’