Draft Long Term Plan 2012-2022 - Hurunui District Council

Hurunui Community Long Term Plan 2012 - 2022the effect of increasing the operational cost that the communitymust bear and as a result, increases in the rate requirement areinevitable. The Internal Financing system goes further to ensurethat communities continue to fund additional payments, even ifthe debt has been repaid, to build up a reserve fund to assist infunding capital expenditure requirements in the future.Council is comfortable with increasing rates to meet the cost ofinterest and principal because existing ratepayers have previouslybeen relieved of any rate increases that may have been requiredif the Council resolved to fully fund the depreciation on thoseassets.33