Despite years of record high inflation, Waimakariri’s rates movements have consistently been one of the lowest in New Zealand and it is planned they will continue to be.
The Council is in a strong financial position and manages:
- $2.8 billion worth of community assets (roads three waters infrastructure, property, recreation facilities, including libraries, greenspaces, playgrounds, pools etc)
- Has annual operational costs of 165 million which is used to run the District
- Debt of $210 million
- Equity of $2.6 billion.
- As of 30 June 2025.
Last year, Council operating revenue was approximately $145 million (excluding vested assets) while owing $200 million. This equates to a very manageable $1.38 of debt for every $1.00 of income.
Let’s put it into perspective.
The debt-to-income (DTI) ratio for first home buyers is typically capped at 6:1. This means they can borrow up to six times their annual income or $6 of debt for everyone $1.00 of income. This is without a significant asset base. Why the Council has debt is partly because Waimakariri is a growing District. As our population increases we need to make sure public assets and infrastructure can meet demand.
Council debt is no different than household debt. Your household would have borrowed to purchase your family home which will be enjoyed for generations to come.
Whereas the Council borrows to build infrastructure for the community that allows us to spread the cost across all generations who use it over 30 to 50 years and more.
Debt pays for the things that matter to people, like swimming pools, sports facilities, roads, water infrastructure, parking, dog parks and more. Without these things Waimakariri wouldn’t be a desirable place to live.
Of the debt Council has, approximately half is due to rebuilding following the earthquakes as well as paying for MainPower Stadium. The remainder funds long term asset and infrastructure projects.
It is possible to pay for things up front, but that would significantly increase rates for today’s ratepayers only.
So far from being a dirty word, debt is a tool that helps keep rates affordable, pays for much needed community assets, and spreads the payments across the generations who will use them.