How does the prospect of a 17.5 per cent average rate increase grab you? That's what staff advised us was a remedy for our city's financial woes at the first day of deliberations after hearing submissions to the annual Ten Year Plan.

This staff suggestion didn't come as a big surprise to most of us who recognise what a blunt instrument rating is. As I've said many times, rates are the only source of taxation that is 100 per cent guaranteed, so there is no bureaucratic concern about whether the amount demanded will get paid. It will.
As development has dropped off dramatically due to the economic downturn and the increasing financial effects of Development Contributions, council's revenue flow from DCs is projected to be about $32 million short next financial year. So the show must go on and are ratepayers yet again to pick up the shortfall? It is only since the early 90s that DCs started making meaningful contributions to the insatiable demand for new infrastructure. Development had long been subsidised by ratepayers prior to this, in my opinion.

Help through the financial hump
Growth pays for growth, is council's policy. That's fine, until people stop buying sections and building. The infrastructure growth requires still goes on – Southern Pipeline, for example – because we are behind in wastewater infrastructure. Stormwater is another. Tauranga is one of eight local authorities rated by credit rating agency Standard & Poor's and it is their debt ceiling of $400 million (in simple terms) that is controlling this Ten Year Plan.
I've asked staff to estimate the cost of exceeding this limit as one possibility of helping the city through the financial hump we face after Year 3. An answer may be to take this interest hit to smooth out excessive rates hikes. User pays is on the way in my opinion – like it or not - and some of the institutionalised thinkers don't like it.

Delaying the inevitable
I was instrumental in forming a 'user pays” sub committee in the 1983-86 council. Then-mayor Noel Pope, Tom Mills, and I versus the staff of the day. It was a financial tug of war as staff subverted every initiative – successfully, I might add – and with electoral support from an old guard council. Well, the longer you delay the inevitable, the harder the medicine will be when you have to take it. It's elected members who decide the rate requirement NOT staff and we are free to do what is necessary in the best interests of all ratepayers, taking everything including the ability to pay into consideration. I/we will be resisting anything like a 17.5 per cent rate increase.

Effective interloan library services
For example, during the debate about stocks of books in the library (a $20 million, 10 year budget) I suggested we should keep stocks at the current per capita ratio, and if anyone required service above that level they could use the very effective interloan service provided by the library.
The librarian flared at that suggestion, saying some people couldn't afford the $5 fee. That got me going too, because likewise there are many ratepayers who can't afford the $125 library component of their rates and DON'T USE the library. The library staff keep talking about 'free” library services, yet I've got a demand in the budget from them for almost $7 million or so to run their 'free” service. But let's not pick on the library.

Latest buzz word
There are lots of user pays possibilities and we're to get on to that later in the week. Rates penalties for overdue rates will bring in $600,000. Twice yearly water rates billings and overdue penalties on water rates (to be introduced from July 1) will save around $80,000 and produce more income to offset rates. It's fair that those who do pay rates are not subsidising those who don't! Procurement – the latest buzz word for how Council spends its money – will get a serving too. For too long it's been a 'well, that's how much it costs” mentality, some elected members say. It may have some validity but sometimes you get what you pay for too. This won't be the panacea for our ills that some hope it will be from past experience. But we will give it a go.

Can't have it all
Greerton Library is on hold for three years and it will get a jazz up and some new toilets (cost about $400,000) meantime. Bill Grainger and Murray Guy want a new one now and Catherine Stewart doesn't want one at all, saying we can't afford it. I have some sympathy with that view. Hayden Evans said delaying it for three years with no commitment to actually do it was misleading and he didn't want to mislead anyone.
The real issue here is the Greerton Hall. The feeling is that Greerton can't have a community centre/library AND the hall. The RSA move next door may see a new role for this hall and three years is fine to see how things pan out.

Beyond refurbishment
Council unanimously agreed to demolish the Arataki Community Centre. It's beyond refurbishment so a new centre will be on next year's agenda.
We will review cost estimates but with growing community spirit at Arataki we're counting on community buy-in to help us help themselves. I think they'll do it, too.
Getting back to how we used to do things – self help. A lot of argy bargy in the debate about the future of Otumoetai Pool. Recommendation was for a stop gap of relocatables for updating of facilities at a cost of $350-$500,000. Some of us said that we should do it once and do it properly.
A lively discussion saw Rick Curach move for a new amenities block but capped at $800,000.
This sort of thing, plucking figures out of thin air is unhelpful, so Greg Brownless moved the proposal be left to lie on the table until Friday.
This set off an argument between Bill Grainger, Mike Baker and Hayden Evans with Mayor Stuart Crosby centred around standing orders. It rapidly descended into what CEO Stephen Town said 'turned it into a shambles.” Hayden must have come within a whisker of being ejected from the chamber when he withdrew his accusation that Mayor Stuart had improperly altered the timing of agenda items – which Stuart explained he hadn't. A very unfortunate turn of events.
Divine retribution was effected when, after morning tea break, the sound system had packed it in.
Papamoa School Pool will be the subject of more talk fests, so no discussion there either.
Mount Hot Pools will go ahead to a final assessment by council on outstanding issues like parking and funding. If we can cross the ‘t's' it will be a good revenue-producing opportunity to help offset ratepayer subsidy of the aquatic network.
It proceeded 6-5, which is how most contentious votes go this term. Not the same 6-5 and great for the democratic process.