Welcome back to Faulkner's Corner and no doubt another year of Council fun, frolics and muck ups.
Council started the year with eight scheduled full day meetings on the 10 year plan draft deliberations.
We've had a pile of information to scrutinise over the holidays and now we put together a proposal for consultation with you, listen to your submissions, react and make alterations as a result and then commit you to pay whatever is finally decided to fund it all. As I said before Christmas the financial picture for the future is pretty grim.
New year's resolution
A resolution proposed by staff was passed at Full Council on November 26 last year and runs as follows: Council notes that the financial position of Tauranga City Council is sustainable in Years 1-3 of the working draft Ten Year Plan meetings in late January and early February 2009. That's what we're doing now. The resolution goes on – The Council's financial position is not financially sustainable over the medium to long term (years 4-10). This is due to a number of reasons including Stormwater, Southern Pipeline, Waiari, Transport, Local Infrastructure and goes on for three quarters of a page. It also notes 'that reducing expenditure to within prudent borrowing levels would not be delivering responsible outcomes to the community,” and continues in that vein.
Day of reckoning
This revelation from staff is something forecast by a minority of elected members as the day of reckoning that was coming. Starting in 1983 it was obvious to me where we were heading when social, artistic, cultural amenities and services were prioritised ahead of Tauranga's infrastructural core services. Ratepayers lost an astute advocate for fiscal responsibility when Tom Mills was not re-elected in 1998 and there have been few others with the long term financial vision to see this day coming but I would count myself one of them.
Restrain yourselves
Feedback I get from ground roots ratepayers is one of rating restraint but still I do hear occasionally some people who should know better advocating for continuing the big spend up. I shake my head at their lack of understanding of basic economics and finances. And if they do understand then where are their contributions to the five year languishing Voluntary Rates Account established so these philanthropists with other peoples money could front with their own money for all the things they think they ‘want, need and deserve”.
Keeping the public safe
So with this background Council's first item embarked on responsible budgeting by voting an extra $23,630 for a total of $155,630 for professional lifeguards next year. Police (who fund rescues like the recent search of Plate Island), ACC and EBOP contribute nil. Catherine Stewart wanted swimming lessons for all, presumably funded by ratepayers, in the interests of water safety.
Development for old school
Historic Village will probably get some sort of commercial development on the old Wickham School site to produce revenue to subsidise community service groups. Staff says it's no longer ratepayer subsidised (it's cost ratepayers a bomb over the years, relieved for 10 years by the Compass Trust underwritten by Tauranga Charitable Trust) but ratepayers are funding a million dollar capital works upgrade. It's also a mere shadow of its former self and is virtually a ghost town these days without active management and promotion. If we're going to have it then it shouldn't have been left to languish.
Swap on the cards
Council proposes to do a property exchange with Bayfair Shopping Centre and shift the Harris Street Reserve to the corners of Leander Street, Huia Ave and Carysfort Street.
I have taken issue with staff over proposals to spend the rough end of $2 million reinstating the Dive Crescent retaining wall – all 250 metres of it.
The basis of my opposition is that our forefathers built it over 80 years ago without the so called benefits of modern science, technology, design, consultants, engineers consents and so on. If it lasted that long, with minimal attention, then why not reinstate the rocks that have fallen into the tide and with a maintenance programme it may last 160 years. But no, so I'm told, the consultant has a much more upmarket solution and I'm sure that a fees-driven consultant would be able to produce a Rolls Royce answer. Silly me!
Baypark budgeting
Baypark is budgeted for nil ratepayers input. The issue of the 10 days minimum, 20 days maximum, control by the speedway and its promoter got a fair old lashing, involving the possible effects on the proposed new Indoor Sport and Exhibition Centre (ISEC).
CEO Stephen Town under pressure from elected members finally acknowledged that it was possible for a promoter to refuse to cooperate with the ISEC on those 10-20 days. But he added that in the unlikely event of non cooperation then this short sighted policy would result in contract termination. To repeat – there is no ratepayer contribution to Baypark Speedway in the next 10 year plan. That's pretty clear and simple to understand I hope.
Closer look at fly tower
Big discussion on the Council resolution to spend just under $1m on the Baycourt Fly Tower. A majority of elected members asked to revisit this much to the chagrin of Mayor Stuart Crosby, CEO Stephen Town and Murray Guy. On a show of hands it will again go under the financial microscope. Stuart and Murray asked what had changed since the resolution.
There are a number of factors but the most overwhelming and obvious reason is the ongoing serious deterioration of the city's financial situation. I mean, the current solution to the staff admitted financial 'unsustainability” is to 'engage with Central Government”. As I've said before yeah right, oh, and good luck. Meanwhile down here on earth in the real world I'll continue to make good financial decisions based on sound business principles.
Fun has just begun
So, at time of writing, the fun and frolics had just begun. I'll update you on what really happened over the rest of the week in next week's column seeing that the media only put in spasmodic attendance – up to this report at least.
Posted: 12:00am Fri 30 Jan, 2009
