The inadequacy of the rating system has been highlighted by the most unfortunate increase of about $150 (including GST) to the average rate.
The government's advisers say rates are unsustainable and the 10 year plan we've recently gone through supports this.
Too few people pay too much to support the community, amenities and facilities. I'm talking about the general rates rather than service charges like water and wastewater. During the deliberations, $350 million capital expenditure was removed by elected members and staff were requested to reduce operational expenditure.
This was reduced by $2 million. This will have repercussions when unbudgeted contingency items crop up and there's no money. I'm not happy with this rate increase nor the increase indicated for the future but the city is between a rock and a hard place. Few people advocated for a slash and burn budget in the submission process. The message seemed to be to keep things ticking over.
Despite what you may read elsewhere the rate revenue increase is 10.9 per cent. The financial situation Tauranga faces is an accumulation of factors bought about by the city's speed of growth.
Extra storm water cost about $80 million, the Southern Pipeline was $106 million and the Waiari Water Supply was $100 million. All had to be paid for by borrowing. This affects the debt envelope of $400 million set by the credit rating agency, Standard & Poors, which affects interest rates we pay and the capacity to borrow.
So this rate increase addresses the debt issue in advance of this 'financial bow wave” and was contributed to in some degree, by previous council decisions which, in my opinion, were not well advised. All this is little comfort to those who struggle to find the extra money.
An income based community levy on all income earners is an obvious option to general rates but until there's a mass uprising, government is unlikely to change things - even though its members are aware of the rates catastrophe facing home owners.
Organisations like Citizens Advocacy Tauranga (CAT) and Pick Six promoted minimal rate rises at the last election. Pick Six was in for two per cent plus growth plus inflation. To their credit, Rick Curach and Hayden Evans voted for this and that realised their election undertaking was unrealistic and voted for the 10.9 per cent rate revenue increase. CAT, unkindly labelled Citizens Against Tauranga by a well known local identity, is advertising a poll requesting public response to options of a six per cent, nine per cent or 19 per cent rate increase.
Interestingly, I'm told the website they use is associated with Mark Groos; a TECT trustee on a plank of 100 per cent return to consumers. It's easy sitting on the sideline dropping mortar bombs about what should be, but it would be helpful to have options and alternatives that may not have been canvassed in the annual 10 year plan process.
I'd be happy to make arrangements for anyone to present new ideas to council at the open forum part of each meeting. Council is advised that there is little room left to move budget-wise, without dramatically affecting community well-being. It's the big ticket items referred to earlier that are at the root of the problem.
Business as usual
Meanwhile we keep the city ticking over. As noted last week, Arataki's new community centre is brought forward. If we didn't do this, ratepayers were faced with expensive repairs – throwing good money after bad – when this hall is way past its use-by date.
The same goes for the amenities block at Otumoetai pool where $350,000 - $500,000 will be wasted on temporary replacement amenities block, in my opinion. These are typical examples of council being between a rock and a hard place.
Indoor action
The Indoor Sport and Exhibition Centre (ISEC) is another.
We could drop out $25 million ratepayer expenditure but this would leave Tauranga extremely short of facilities when the Mount Action Centre lease expires in four or five years' time. This project is likely to be all go now that TECT has confirmed it will contribute $7.8 million in cash and tax credits to the $41 million budget.
Planting new seeds
At the events sub-committee, applications for seed funding were approved for 'flagship” events. These are major events attracting lots of people, which stimulates our local economy.
The Tauranga National Jazz Festival gets $30,000; the Garden & Artfest Bay of Plenty gets $25,000 over two years; Tauranga Arts Festival receives $25,000 and the Guarantee Against Loss (GAL) receives $25,000 over two years; Bay of Plenty Kart club gets $20,000 and GOL $7,500, Junior Ocean Athletes gets $1,500 and Half Iron Man gets $1,500. This is total $107,000. Council's intention is that this money is a hand-up not a hand out, designed to make these organisations financially independent. They are also encouraged to maximise their income from financial opportunities within their own activity. Social conscience goes two ways where ratepayers' money support is involved.
Those who benefit historically get the focus and those who do the paying (ratepayers) get forgotten. This whole programme is up for review later in the year.
Moderation the key
A workshop comprising police, bar and restaurant owners and council to address late night problems on The Strand was a positive step to mutually acceptable solutions. People and booze are a complex mix. The original intention was outdoor dining with a quiet drink.
Boy, how that's changed. We saw throngs of people on video late at night just drinking and indulging in physical antisocial activity. The aim is to have action for summer in place by Labour Weekend.
Have your say
Public submissions are open for council's proposal to have 10 councillors elected at large for the next election.
This does away with three ward councillors. Don't get too excited. The ultimate decision rests with the government appointed local government commission. History decrees they do what they want regardless.
Posted: 12:00am Fri 19 Jun, 2009
