Revenue, expenditure, net assets and borrowing
Borrowing is forecast to increase over the 2020/21 financial year from $50 million to $115 million. The increase in borrowing is to spread the cost of key projects over a number of years. This means that both current and future ratepayers contribute towards the cost of roading improvements and new community facilities.
Investments form an important part of the Council’s funding. The Council owns 100% of our contracting company Sicon Limited, 10.725% of the electricity lines company Orion New Zealand Limited and 3% of the waste disposal company Transwaste Limited. These companies provide dividends to the Council that are used to reduce the level of rates paid by rate payers. We estimate that the total dividends in 2020/21 will be nearly $5 million. This is equal to 7% of our rates income. Shareholdings, in addition to other assets such as term deposits and land holdings, also help provide additional financial security for the Council in times of need.