Kapiti Mayor K Gurunathan says while no decision has been made on setting up two proposed investment funds, alternative revenue streams must be found.
Debate is raging amongst community board members, and some local groups, over the Kapiti Coast District Council’s plans to establish Resilience and Growth investment funds.
It’s proposed that the up to $30 million funds will initially be established with borrowings from the Local Government Funding Agency.
Mayor Guru told Beach FM he welcomes the debate but emphasises that Council needs to explore ways of generating income, as it cannot continue to depend on property-based rating.
He says the Council must meet the challenges of climate change, coastal erosion, flooding and increased insurance costs.
“80% of our income comes from rate, it’s not sustainable. Local Government New Zealand recognise this," he says.
"We’ve been hammering the Government to say we need alternative ways of raising revenue, how do we do this?”
He says other councils have sold assets to establish funds and off-set rates, but the Kapiti council is not in a position to do this.
Interview was conducted by Martin Wilson on the Beach FM Morning Show on 27 August 2018. For the full audio click here.
The interview will also be repeated on the Week That Was programme this Saturday from 10am-3pm. The Local Politicis segment is from 11am-12pm.