The 10 year plan consideration for draft proposal meetings held over the past couple of weeks have been a challenge and an interesting experience.
Media were only attending in the mornings, staff were thrown off balance by a new council attitude and some elected members came out of their electoral closets and revealed their true colours.
For example, it could have been straight out of a George Lucas movie last Thursday when Mayor Stuart Crosby came in from the dark side and proposed Council go into a 'hold as-is” mode for the next three years (which will still require a rate revenue increase to pay for operational expenses as all the capital expenditure from the last couple of years comes on line) plus one project – possibly the Indoor Sport and Exhibition Centre.
Murray Guy and Bill Grainger, among others, adopted a Darth Vader mantra by voting against the proposed Mount Hot Pools Development, which is proposed to be self-funding and loan moneys borrowed to stand outside of Council's debt envelope – which would also presumably mean it would not be ratepayer guaranteed.
We want it all
Then Murray later moved, seconded by Bill, that council proceed with the ratepayer-funded proposed new Greerton Library and Community Centre, and retain the existing Greerton Hall as well.
Murray said that he didn't mind a 10% rate revenue increase as it was only another $180 or so on his rates bill. He said the sky wasn't falling and we had to be realistic and it was a reality – we aren't in the 1930s.
Rising costs
In addition to the capital expenditure of somewhere around $6-8 million for the Greerton project, this proposal would have raised operational expenditure by more than approximately $1 million, or another 2% on your rates – forever. Murray has said in the past (although not at election time) that you can't govern to the lowest common denominator, but this revelation truly astounded some of us. Interesting the Bay Times never mentioned this.
Plan makes sense
Common sense prevailed and the motion was lost 9-2. Council will look at an update of the existing library and retain the Greerton Hall. Some $283,000 spent on design won't be wasted, so we were told, as the plans can be implemented when things get financially better. All of this, of course, is only proposals going into a 10 year plan for consultation purposes and nothing is set in stone.
As far as the Mount Hot Pools are concerned, the project went forward on a vote of 6-5. Tauranga City Aquatics Ltd, the company that runs the aquatics network, was congratulated by most elected members on the great job they had done. And then in the same breath some didn't support taking the proposal forward to public consultation.
Doing a good job
From where I sit it seems that if borrowings sit outside of council/ratepayer responsibility, TCAL has proven it is doing a great job, the project has the capacity to reduce further the $1-$2 million ratepayer subsidy by surplus from the new development, and TCAL has a wish to provide free learn to swim programmes for children like Catherine Stewart said last week; then why wouldn't you want to give the public the opportunity to have their say through public consultation process?
TACL is managing its portfolio very well. In my view if Council was doing it in the manner that they did in earlier years', ratepayer subsidy for aquatics would now be around $4-$5 million. I often drew comparisons with that English comedy series 'The Brittas Empire” in days of yore.
Stormwater woes
Some interesting information has bubbled up during debate. Council is buying five properties in Third Ave as a consequence of inadequate stormwater control and elderly residents have been sandbagging their properties themselves. Most elected members were not aware of this and it has been handled by staff with funding from the Strategic Property account.
Under control
Over time the problem will be fixed and the properties re-sold. No problem. But how do you rationalise the expenditure on cultural, artistic and social amenities ahead of this sort of essential council core service? Past council priorities (by majority vote) were sometimes sadly astray and there are plenty of other examples.
More to come
I asked staff for an estimate of properties vulnerable in similar fashion and was told there are a significant number. So our $213 million stormwater budget in the 10 year plan is a priority and any extra dollars should go in there too. Way ahead of social amenities.
Bleeding cash
The ANZ chief economist Cameron Bagrie told Council that for every dollar NZ had earned in the past 20 years we spent $1.09. New Zealand is bleeding cash and we have been living beyond our means for the last 10-20 years like an aeroplane progressively losing engines.
We have to get back to basics he said and get rid of the Freddy Mercury scenario – we want it all and we want it now. Council's situation isn't a whole lot different to the situation the country faces.
To use the chief economists analogy, locally we have to fasten our seat belts as the engineless plane commences the dive (sky falling in?) control the plane and hope the pilots (elected members) can demonstrate calm, cool thinking and get the engines running so that the plane can level out before it hits the ground – that is – break its ratepayers ability to pay.
ISEC controversy
Last item last Friday was the Indoor Sport and Recreation Centre (ISEC) and the media turned up for this one no doubt sniffing controversy. They weren't disappointed as CEO Stephen Town and Murray Guy had a contretemps over contract details re: Baypark purchase and the speedway promoters control over the site.
The long and short of it is Council is technically at risk regarding control of the site for the 10-20 days/nights of speedway. Tauranga City Venues Ltd's (which runs the complex for Council) chairman Grant Seagar told elected members that everyone recognises a problem that has to be solved and the speedway promoter wants this venue to succeed as much as anybody.
All is forgiven
TCVL was working through issues with speedway and there had been a lot more goodwill in the last few weeks. Mayor Stuart Crosby said it wasn't fair to comment further on the promoter as he wasn't present to defend himself. At meetings end, Stephen withdrew a comment he made that Murray Guy was 'mischievous” and Murray said all was forgiven.
The outcome is that the ISEC will not proceed any further without $9m external funding in place – despite staff attempts to persuade us that it would all be forthcoming. Staff are in dreamland if they thought this council would fall for that old ploy. And we need certainty over the site access with speedway.
Posted: 12:00am Wed 04 Feb, 2009
