It is with a heavy heart I report the mythical 'average” rate in Tauranga will rise by about 11-12 per cent or $150, including GST but excluding water.
This is more than the draft budget proposed at 9.1 per cent ($123 approximately) but less than staff dropped on us at the beginning of deliberations at around 17.5 per cent (over $200).
Previous councils misguided priorities, poor previous advice and bad luck (May 18 floods) have brought things to a head.
Mainly it's this artificial hurdle created by the $400 million debt envelope which affects our borrowing capacity and interest rate. The year 2012 is when this was forecast to be exceeded. Infrastructure work not done, like stormwater, added an extra $80 million or so over 10 years also contributed to this. Past councils' misdirected policies for social and cultural spending – 'you have to nourish minds as well” – contributed by redirecting financial resources from the infrastructure spend.
Just as well this council canned the waterfront museum, which would have added about $50 per ratepayer per year. We also removed $350 million of proposed capital works over the next 10 years. Elected members were between a rock and a hard place. So, with six options voted 7-4 for Option 6 an increase.
Other options
I favoured another option, which may have eased the pain but was only a variation on a theme. David Stewart and Wayne Moultrie hung out for another staff option but still supported the increase. This left Murray Guy and Catherine Stewart not in support of an increase. This, despite them speaking and voting in support of various items during the four-day deliberations. It's hard to comprehend how you vote for this or that, then don't vote for the funding to actually do the work. There are many items that individually we all, at various times, support or don't support and votes are taken as we go. Once it all gets added up at the end, we vote for the money supply (your rates) together with a resolution devised by me and Stuart Crosby a few years ago, which notes that even though we didn't all agree with everything in the budget we acknowledge the democratic process by which the decisions were arrived at. Accordingly, vote the money to do the work.
During the final debate, Wayne Moultrie in his best prosecuting lawyer mode said if we didn't raise the rates we risked government appointing a commissioner to it. I think this was scaremongering along the lines of the big bogeyman when we were kids.
Council shake-ups
I see that Local Government Minister Rodney Hide is reported as 'planning a radical shake up of councils”. Cabinet has approved a review of scrapping social and cultural well-beings and concentrating on core services – transport, three waters, and rubbish. So, maybe big change is around the corner.
This could mean the end of compulsory rate funding of libraries, pools, art galleries, museums. And get this - no public consultation until select committee stage. Methinks Rodney et al are really after council monopoly services, such as water for his fat cat mate, just like Roger Kerr and Richard Prebble in the mid-90s. I fought them then and I'll fight them again.
User pays debate
User pays got a fair old lashing and council is looking to the library to incrementally push its income up by two per cent a year for five years. I asked that nothing be done to subvert this, as happened previously. I hope the initiatives required are realistic and are targeted at those who are in a position to pay, for instance, leave the children's section alone. Boat ramps are being left alone, meantime. It's going to cost as much to collect as is gained and they are presently funded out of the marine facilities account. If new ramps are built in the future, then charges need to be introduced.
If we charge park and display at ramps all that will happen is that cars and trailers will park on the street and the ramps are not set up for barrier arms. The cost at present is under $100,000 and a lot of that is for work like sand removal off the Pilot Bay ramp. Imagine paying for parking at the Mount. But user pays is on the way.
As Hayden Evans said during the user pays debate 'people have to pay their way”. Touché`.
Hot debate on pools
Hayden and I agree, as does every elected member. The Mount Hot Pools will be redeveloped. There is much nonsense talked about this project.
The existing hot pools will be renovated and admission fees will only rise with inflation. The business case for the additional amenity is based on a 30 per cent of capacity business case, which, in my view, is conservative.
Realistic solutions to parking are being worked on by Tauranga City Aquatics Ltd (TCAL). Already non-pool users who park in the hot pool carpark are being towed. Valet parking in a leased car park and a one-way system in Adams Ave allowing angle parks are being considered.
The proposed cultural centre will be 100 per cent funded by external parties - someone mentioned Iwi - and will not be built until the money is in the bank.
Almost three hours of argy bargy over what to do with Otumoetai Pool saw a previous day's resolution rescinded and it will now get a patch-up job of about $350,000-$500,000. This is short sighted.
If we are going to be in the business – the pool is already there – then it is foolhardy to do temporary upgrades. They end up costing double or more, but by majority vote the show goes on.
Central Parade at the Mount gets its promised (by the previous council) upgrade; once again by majority vote.Ratepayers paying to underground those ghastly power lines is yet another example of the travesty of the nonsense of Max Bradford-inspired power reforms where 'we will all be better off”! But the Powerline Company won't do it. Why would they?
They've got their shareholders to pay, and their directors, and the taxman. So, there is no good news, in terms of rates - now or in the future. Tauranga's rates were never 'cheap” and will now be right up there, making the 10 year plan 'sustainable”. As the 2007 Government Inquiry noted Property Based rating is unsustainable in the long term and as it is the government who makes the rules, it is up to them to make local government funding sustainable. Don't hold your breath.
Hear council in action
Listen to an excerpt from Tauranga City Council's great rate debate on June 5 at www.sunlive.co.nz/5609a1.page
While you're there, check out the accompanying table – Options for Timing and Extent of Debt Reduction Charge.
The full recording of the meeting is available at www.tauranga.govt.nz
Posted: 12:00am Fri 12 Jun, 2009
