Cr Bill Faulkner Faulkners Corner www.sunlive.co.nz

Murphy's Law is alive and well after I wrote last week about the previous week's flooding and how the city stormwater system coped well with the downpour.

It got another good tryout just a week later and whilst there was some flooding, the old hotspots like Bureta, Pillans Road and Vale Street weren't flooded. The two water processing plants were shut down due to the extremely dirty water coming down the rivers and a water main in Maleme Street broke when a tree blew over as its roots had wrapped around the pipe. Anyone who doubts the effects of water runoff from surrounding hills needs only look at the volume of silt in Tauranga Harbour after the rains. Days later and its still dirty brown. Imagine the chemicals, poisons, fertiliser and oil that has washed down into it. Plus some sewage overflows as the stormwater got into wastewater pipes as well. The mangroves are just a small visible matter compared with this invisible invasion of our harbour.

Land sale considered
At full council, elected members continued with the second cut of the draft annual plan. We are to revisit the possible disposal of the May Street Reserve.
To those of you who are unfamiliar with this reserve, it is in downtown Mount. Largely hidden from view it is surrounded by houses. There were thoughts from some when it was proposed last time that the proceeds from a sale might be applied to the development of the Mount Greens project. Understandably the residents surrounding the reserve were opposed and a sale wasn't pursued, but the ratepayers' financial situation is such that it warrants another look. Last time the value was set at about $5 million. Proceeds from a sale can only be applied to reserves and thinking is that if it were sold it would make a significant contribution to the development of other more public reserves, relieving some ratepayer burden. As the Mount Greens has added to the ‘family silver' it is probable that as the financial situation plummeted the project wouldn't have proceeded. So it's an option to reconsider the sale of this ‘old bit of family silver' which is what is proposed.

Writing off Route K
A lengthy debate (again!) on Route K tolls. It was proposed that a previous discussion increasing tolls from $1 to $2 be amended to a reduced increase to $1.50. The object of our council's exercise should be totally focused on one single issue. That is, getting Route K debt of about $55 million off our books by way of takeover by NZTA. To do this, NZTA rules require ‘financial sustainability'.
An increase of tolls to $1.50 apparently fulfils this requirement. A lengthy debate ensued with those opposed to an increase saying that in their view financial sustainability can be achieve by leaving tolls as is, which means that traffic volume won't be affected. That's as may be, but it doesn't meet NZTA requirements.
The proposal was lost meaning the tolls stay the same at $1. This issue will be back before council in short order. The consequence of council holding this compounding debt is too far reaching for this not to happen. Once this debt is off city council books the figures will all fall very comfortably within limits set by the credit rating agency.

Taking it outside
During the debate Murray Guy got a little wayward with a nasty exchange with Mayor Stuart Crosby. Murray is prone to ‘going on' in question time. Lengthy statements from him when he is only supposed to ask questions tries the chairman's and council's patience regularly. Mayor Stuart Crosby called him to 'settle down” and ask his questions.
Murray remarked that if Stuart didn't like his (Murray's) statements then Stuart should 'go to smoko”.
Stuart deftly defused the situation, but it was an unpleasant moment that inexplicably went unreported in the daily media. Later at ‘smoko' I saw Stuart and Murray with a ‘real coffee' which I presume Murray had purchased for Stuart from the canteen.
Other than this isolated incident, elected members, whilst engaging in vigorous debate and different points of view, all seem to be getting on fine.

Banding to beat debt
The Local Government Debt Funding Agency initiative is coming together. This is where a group of council's club together to borrow ‘bulk monies' for their loans. So, instead of, say, Tauranga borrowing $10 million independently, this group would borrow $100 million and on lend the $10 million to Tauranga. The huge advantage is a 0.3 per cent to 0.7 per cent reduction in interest rates net of costs.
In the short term, this can save Tauranga $500,000 in interest. All participants, which includes central government, are jointly and severally liable for all debt, but no local government in New Zealand has failed on debt. There are built-in safeguards surrounding this improbable event, both within local government, but also central government. It is a sensible long overdue initiative in my opinion. Surprisingly it did not receive unanimous support with Councillor Catherine Stewart expressing sole opposition.