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

Following last week's column, the next enthralling episode of full council consideration of funding for flagship events was an event in itself.

It's election time – and some seeking an election issue – is one possible explanation for some of the comments made in a molehill/mountain/marathon/debate/discussion. To recap, elected members had decided a year or so ago to revisit policy on ratepayer funding assistance to flagship events, designed to attract visitors to Tauranga with the intention of providing economic stimulation to our business sector (a significant contributor to the rate take). But, for a number of reasons, this review hasn't happened yet. It will now – and before the forthcoming election. The six flagship events presented their plans for their respective events in public excluded, although there was nothing in any of their presentations that was commercially sensitive (other than their balance sheets, in my opinion). I raised this after the presentations – and it was agreed that in future the presentations would be in open. This would enable the media to convey the good work of the applicants and their methodology to you out there in ratepayer land. The thrust of the four elected members, opposing granting the Garden and Arts Festival $30,000 and the Tauranga Arts Festival $25,000, was that their balance sheets were showing a surplus. A surplus that can easily disappear should the event fail – for instance, if bad weather prevails. Ratepayer funding support is only part of flagship status. Events applied for, and were granted, Council Flagship Event status, which implies the council supports enabling these various events to use that status to attract significant other funding and support.

Element of integrity
There is an element of integrity and loyalty expected – both to and from council – in this. And it would be totally inappropriate to pull the rug out from under any of them at this late stage. So, on a vote of 7-4, the funding for all flagship events was approved with Murray Guy, Catherine Stewart, Rick Curach and Bill Grainger dissenting. Mayor Stuart Crosby gave a serving, outlining his strong views of why the council should support the events, saying he couldn't believe some of the opposing comments he had heard and that these comments illustrated why this whole matter needed to be taken out of elected member's hands. There has been a proposal from a small group of city philanthropists to take over event funding and contributing money, to amalgamate with ratepayers and other charitable funding and greatly increase seed money to attract new events and support existing events. This will form part of the forthcoming review, which will also consider: how events get flagship status, when that status might cease, what notice would be given, whether grants continue, should support be loans, guarantees against loss, and whether a significant increase in funding from all sources is warranted. Some people see events as an employment opportunity.

Not taken lightly
Others battle on in a voluntary group with some organisational professional assistance, and many other issues to be considered. This shouldn't be taken lightly. As one example, it has been stated that the Easter Jazz Festival is the catalyst that sees most of The Strand entertainment centre get through the winter financially. There is significant employment and investment down there, all paying rates, wages, taxes and fees. Other cities are after some of our events too – and they have bigger cheque books. But integrity and loyalty to Tauranga mean there's no threat in that quarter. All in all, this matter needs urgent attention but just before an election may not be the best timing – c'est la vie. As chairman of the Airport Committee, along with other members, I was delighted with the good news of a surplus of $1.6 million – $84,000 above budget. Before the naysayers rush into print, it is acknowledged that the majority of this is provided by prudent management of leased land surrounding the airport. Notwithstanding, this operation is a council success story and community asset, aided significantly by input from our three committee members from the private sector with aviation backgrounds – Andrew Gormlie, Phillip Thompson and Frank Wright. The others are three elected members – myself, David Stewart and Catherine Stewart. Aircraft movements were 74,098 for 2012 – down from a high of 105,766 in 2008. Those were the heady days of pilot training for offshore students. Landing fees generate enough income to fund half the runways costs – with depreciation on the main runway being significant – and we maintain a great balance between recreational activities, ranging from parachuting (once you jump out of a plane you technically become a plane requiring supervision in the airspace), gliding, micro lights, air shows, war birds, helicopters, gyrocopters, aero club small commercial aircraft and larger commercial aircraft. All in the middle of the city and the open land of the airport it is a good asset in creating a buffer between conflicting land users of residential/commercial. At council's Projects and Monitoring Committee we received a petition to remove signs banning cyclists from the access way alongside the road on Harbour Drive, Otumoetai. Some pedestrians had complained about some cyclists, and staff had taken action to put the signs up. Initial reaction from most elected members was to take the signs down, to allow cyclists, but ask for care and understanding between conflicting users.

Planning is paramount
A report will come to elected members outlining issues. Treasury reports finances as budgeted, but increasing interest rates in 2014-15. Careful planned management of debt will be paramount, along with no unplanned spending on nice-to-haves, if we are to continue to control finances and levels of service. Very strong tummy muscles are needed with the ability to decline and/or defer popular demands from the community. Rates revenue funded debt on June 30, 2013, is $230.1million with total external debt at $378.9 million. Of that $193.4 million is non-ratepayer funded. An interesting editorial in the National Business Review stated organised towns and cities are well placed (for economic growth), as places such as Auckland, Tauranga and New Plymouth demonstrate. That's right. And with growth comes demand for infrastructure; and one sensible way to fund that infrastructure is carefully managed debt. This shares the burden of infrastructure costs more fairly across the generations into the future, who will benefit.

This week's mindbender – a French proverb: 'There is no pillow as soft as a clear conscience”.