Steve Gibson: Why Councils Need to Live Within Their Means

Across New Zealand, councils are drifting away from a simple principle that every household understands. You cannot spend more than you earn and expect it to end well. In Hastings, where I serve as a councillor, we are seeing this play out in real time.

Our council has approved a draft annual plan with a 9.1 per cent increase in spending. That is roughly three times inflation. At the same time, ratepayers are being asked to accept higher rates while the council borrows $4.8 million just to fund day-to-day operations.