Jane Nees BOP Regional Councillor www.janenees.co.nz

Local government has a major funding problem. Community expectations are increasing, government keeps on pushing more requirements onto local government without associated funding streams, costs are going up, infrastructure needs development or upgrading, but we need to hold costs.

A good example is the proposed cap on SuperGold Card funding, which subsidises bus trips for our senior citizens. Government is now saying this will be kept at current levels, at the same time as bus usage by seniors is increasing and as we plan for a future 'silver tsunami” of older people as our population ages. How we handle this funding shortfall is causing concern – should the general ratepayer pick up the shortfall?

Two divergent issues being experienced by local government are either a shrinking rating base because of aging population or burgeoning growth in population accompanied by a lack of ability to fund the associated infrastructure. The focus is being put on doing things differently, but the predominantly property-based taxation system we use for funding our activities is not changing. Some believe the current funding model is broken, inequitable and unsustainable.

A 10-Point Plan was recently released by Local Government New Zealand on options, actions and policy decisions needed to provide greater funding flexibility for councils. Ideas include requiring crown entities such as education or conservation to pay rates; a portion of local taxes or mining royalties taken to help fund local infrastructure; or co-funding with government for infrastructure like water and waste-water, similar to that provided for roading.

There are a number of other possibilities for funding. Collaboration between various TLAs, organisations and businesses can help fund various initiatives, for example, the Tauranga University Campus. Targetted levies and taxes are also a possibility, for example, visitor levies used to upgrade tourist linked infrastructure.

Councils have a number of opportunities – some we can do alone, some with others and some will require central government. It needs to begin with a long collaborative conversation.

If you have views on this or any other issue, you can email me at neesj@xtra.co.nz or ring me on 07 579 5150.