It's almost like the calm before the storm as elected members await delivery of 1200-1300 submissions received from the community in response to the draft annual/10 year plan.
As I write this there are six days to go before hearings start so assuming elected members received submissions today there will be some midnight oil burning as we attempt to take it all in. It's too tight a time frame – most elected members do take this process seriously and around six days to study submissions is a big ask even for those of us who did the speed reading course. Hearings start this Monday and are set to run all week.
Seeking reductions
Some time ago, after a Council discussion, Mayor Stuart Crosby wrote to the 12 organisations that provide service in some form or other to Council to attend a meeting aimed at seeking reduction in their ratepayers funding.
The 12 organisations – Creative Tauranga – Art Gallery – Foodbank – Chamber of Commerce – TCVL (who run Baypark) – TCAL (who run the pools) – Tourism BOP – Priority One – Export BOP – Citizens Advice – Sport BOP and Tangata Whenua collective. At one end of the spectrum Foodbank gets around $4000 ratepayer funding to TCAL who receive around $1.5 million ratepayer subsidy to run the pools and repay Baywave loans. In between Art Gallery get just over $800,000 and Chamber of Commerce $40,000 approximately. This totals around $4 million ratepayer subsidy.
Murray Guy said that this was a small amount and wouldn't help us out of the financial dilemma we are facing. We got to this situation with the 'it's only a cup of coffee” mentality which added up to the current rating requirement. Maybe we can go without some coffee and use this as a reverse solution.
As with life those who can afford it least give the most and the Foodbank said that if Council cut their $4000 in half they would have to live with it. At the other end of the helpful advice one of Creative Tauranga's suggestions was to put the rates up.
All spoke of the great work and service they provide and the value to the community.
Beat the downturn
As I sat there listening to all this I mused at the similarity of the situation some people face where they too provided good work, service and value but nonetheless were faced with losing their jobs and incomes.
There were some bright spots. TCVL who run Baypark get no ratepayer subsidy. And none is budgeted for in the 10 year plan. Tourism BOP said that they had a 31% decrease in ratepayer subsidy for their I-Site (Information Office) operations and had generated 47% more income. This resulted in 29% more spending on promoting Tauranga. Well done.
They commented that one way to beat an economic downturn was to trade your way through it and you do that by promotion and advertising. Likewise Priority One is 55% member funded and is active in bringing work and employment opportunities to the Bay. They appear to be doing good work.
Painstaking process
Waiari Water Supply Project committee met for an update on progress. This is the new water supply from the stream just east of Te Puke to supply water for expected growth in the east of the city and surrounding area.
It will be funded by development contributions, not rates, and will end up around $100 million once completed. The process is painstaking and deliberate so that we get it right first time. Western Bay of Plenty Council is a partner in the project and Tangata Whenua are also represented. It's a low profile committee as it seems are all committees that address council's core function but they also cost the most.
The financial situation that this project and the Southern Pipeline create for the city is significant. If we could get both these projects off our books we then become 'sustainable” in bean counters' terms. So I've been seeking advice on how, for example, we could put 50% of the Southern Pipeline capacity that will not be required for 30 years into a separate debt envelope and leave it for those people who stand to benefit in 30 years time to pay for.
Monopoly mind set
This brings in the effects of compounding interest and for some reason is unacceptable. In my view if our forebears had left us an asset along with compounding debt it would have been a big help. Say a sewerage system. It would have been in place before development occurred, no resource consents, and so on.
The only answer I get is 'just put the rates up”. This 'solution” is dead easy – you don't have to think. It's an arrogance that comes with a monopoly mind set. This mind set exists because rates are a blunt instrument and property owners have no choice. Sure they can boot out elected members come election time and replace them with newbies who will take a while to come to terms with the system. The more things change the more they stay the same.
What do you think?
So for a bit of consumer research email me on wrf@clear.net.nz and tell me what you think about a $20 rate increase over and above to pay for the unused Southern Pipeline capacity.
On another bright note staff advise that building consent numbers are on a par with April last year - $7.3 million and $7.2 million April just gone. Let's hope this trend continues and is not a blip.
Outrageous move
In an absolutely outrageous move, Whakatane District Council is appealing the recent court decision regarding Environment Bay of Plenty's move from Whakatane to Tauranga.
This appeal is likely to cost (waste) each party $100,000 which is paid out of ratepayers' pockets. As an appeal can only be argued on points of law, my information is that the appeal is unlikely to succeed. In EBOP's case, they have to defend their position and the only winners will be the lawyers.
Posted: 12:00am Fri 08 May, 2009
