Official Information Request - interest on debt

Sent: Friday, 4 August 2023 8:29 am
Subject: Information request – interest on debt

I refer to your email of 26 July 2023 regarding the pie graph included with rates invoices, and provide the following information in response to your questions:

1. What are we paying in interest each year on this debt?
   Interest costs on borrowings can be found in the 2023/24 Annual Plan on Council’s website HERE on the following pages:
   • Prospective Statement of Comprehensive Revenue and Expense – page 24 – ‘Finance Costs’; and
   • Prospective Statement of Cashflows – page 28 – ‘Interest Paid’
2. What percentage is this of our total rates income?
   Interest on borrowings as a percentage of total rates income can be calculated by dividing the ‘Rates (excluding metered water)’ line with the ‘Finance Costs’ line in the Prospective Statement of Comprehensive Revenue and Expense on page 24 of the Annual Plan.
3. Where is this shown on the brochure’s pie graph?
   This pie graph is a representation of the pie graph on page 14 of the Annual Plan. The pie graph is intended to show how operational revenue is applied to the main activities of Council. It is not intended to show debt repayment.

You have the right to seek an investigation and review by the Ombudsman of this response/decision. The Ombudsman’s Office can be contacted by calling 0800 802 602, emailing info@ombudsman.parliament.nz, online at www.ombudsman.parliament.nz, or by post to The Ombudsman, PO Box 10152, Wellington 6143.

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Regards