Welcome back to what is already shaping up to be a time of fun, frolics and other political happenings in the run up to October's local government elections.
Council commenced its deliberations on the draft annual plan for 2010-2011 with four full days scheduled to discuss what will be in the budget to go out for public consultation in March. That's all it is – a draft, and in spite of what you may read or hear elsewhere nothing is set in concrete until the final decision after receiving your feedback and hearing your submissions in May-June.
Nothing happens quick in the Local Government Act. Staff presented a big picture scenario to open the session. $147,664,000 to run the city in 2010/11 and about $100 million in capital expenditure – not all rates money and includes loans, user fees, development contributions and ‘renewals' – these being rates money set aside each year for depreciation (in cash) as assets deteriorate. Depreciation is actually collected in cash from you each year – NZ is the only country in the world where the law demands this so we were told (again!) and is a bone of contention amongst elected members. As assets (buildings, pipes in ground, infrastructure for example) get revalued every three years, depreciation skyrockets and is a hidden menace to ratepayer wallets.
This year, for the first time I am aware of, staff have decided to not fully fund all depreciation on revalued assets. I questioned whether this would leave future councils with a time bomb and staff assured council that this would not be the case and that they were taking a long term view that they could explain to the bogeyman at Audit NZ, who are the police force in council financial and policy matters. I hope so. I have heard assurances before – like the 'Welcome Bay Wastewater Diversion” a seemingly innocuous $7m-8m project originally that turned itself into the $100 million plus Southern Pipeline as the real problem and consequences of inadequate wastewater planning became apparent.

Route ‘K'ostly
First up with a full contingent of media present was the discussion on Route K funding and future. It's planned to hand it over to the government agency NZTA (NZ Transport Agency) (The Agency), formerly Transit NZ, in 2011/12 when the Pyes Pa bypass, which runs through The Lakes and comes out by the crematorium, is due to open. But there is a well known funding problem and it seems it's the role of council to set matters right (in financial terms) by making the debt financially sustainable before the event. In lay terms, that means we have to put the tolls up from $1 to $2 or add $38 to your rates. I said that in the words of a former councillor that would be over my dead body that that would ever happen. Especially as ratepayers had always been assured (promised) that wouldn't happen. It was appalling to even see the option raised and it was kicked for touch with a resolution from Mayor Stuart Crosby that all other options to be considered (tolls, fuel tax for example) EXCEPT rates to make an acceptable package up for the transfer to NZTA. This went through 9-2 and it was quite a surprise that Murray Guy in speaking in opposition to the motion said he was not averse to some rates money to help pay for Route K. Bill Grainger also opposed and whilst not speaking to the formal motion noted in discussion his opposition to tolls.

Media miss out
With little blood on the carpet most of the media then departed for most of the day returning late afternoon for what I presume they anticipated would be another blood letting over the library review, costs and charges. Again nothing is decided, the report was received, discussed and options will be presented for your consideration and submission. It's a pity the media take this hit and miss approach to council matters as their lack of continuity means that a true picture of the issues the city faces doesn't get reported. That's their business but it can be a somewhat biased picture that gets presented (like for instance missing out the good bits) for public consumption.
Not all council does is wrong, controversial or contentious. There have been good savings on rates requirements in some departments, costs held in others and probably most importantly to a majority of ratepayers levels of service are being maintained. Of course in other activities rates requirements have rocketed. The Mount Surf reef cropped up (or more to the point doesn't crop up!) and I said it was time to call it quits before it sucked up more public money. It was tried, didn't fulfil expectations and more good money shouldn't be thrown away. Elected members appeared to agree.

Piping hot
Stormwater rate requirement is down $1.5 million mainly due to the decision to not fund some depreciation on some revalued assets. Wastewater likewise is down almost half a million. Pleasing to note a decrease of stormwater inflow into the wastewater system in areas where council asked residents to prevent entry of stormwater into gully traps. Likewise council sealed up manhole covers to keep stormwater out.
Water rates and user charges are down $107,000. Water meters and the membrane microfiltration system have exceeded the most positive expectations in the run up to their implementation. No water restrictions in 12 years despite increased population due to people not wasting water. Everyone has sufficient thanks to the inherent fairness of the system and the reliability of the process not to mention the health benefits of finely processed water. Staff said this year the city has benefitted to the tune of $6.1 million in capital expenditure reductions. That's gone on since inception in my view but it won't/can't go on forever. The new plant at Waiari will be needed, new reservoirs are planned and other initiatives will keep this most important infrastructure item at the forefront of NZ water supplies.

Library limits
A comprehensive review including an outside consultant on the library operation referred to earlier was received. It's aimed at bringing the library into line with other council operations. Head Librarian told council she could cope with most of the suggestions. Budget presently requires $6.8 million, an increase of $434,000 over last year before any of these initiatives are considered.