Thursday, May 23, 2013
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Dollar signs in their eyes

Cr Bill Faulkner
Faulkners Corner
www.sunlive.co.nz

It’s halfway through this council term time-wise and two-thirds of the way through having just completed two out of three financial plans for the term.

It’s a conundrum all elected members face, these financial plans, that bring home the reality of responsibility to the community. Vote for this and that service or project and there is the risk of increasing debt and rates. Vote against and there is the potential to reduce the levels of service and standards of living the majority in the community expects.

This year’s rating requirement of around 3.4 per cent is more than I wanted but is also less than expected. Some elected members still have dollar signs in their eyes and seem to think that council can help spend the city economy out of this financial downturn. Others, and I am one of them, don’t subscribe to this theory. To spend your way out of a downturn first you have to take the money from those you purportedly want to help – and that’s the bit these theorists miss. But as explained in last week’s column, there is probably going to be general public acceptance of a lower than expected rates bill.

Council property sales are budgeted to reduce city debt by more than $20 million in the coming years. There will not be a fire sale. Aspen Reserve, the site of the old Aspen Tree will not be sold and nor will Soper Park on Newton Street but nearby Tatua Reserve will be.

Council will seek a private/public partnership to go into the Phoenix Carpark in downtown Mount Maunganui, along with the proposal for a new library private/public partnership at Greerton, which has been initiated by the CEO. Sales of land that may be required in the future have been put on hold pending outcomes of decisions by government agencies. For instance, the 15th Avenue/Mayfair Street properties council/ratepayers own may be required for realignment and expansion of the Turret Road to Fraser Street intersection. Until that gets sorted, plus the dispersal of traffic from that intersection, there is no point in a tunnel into Welcome Bay or another bridge at Turret Road. Speeding up the traffic to get to the 15th Ave/Fraser Street traffic jam makes no sense.

The Bay Times did it again with an editorial slagging council for not funding a new professional lifesaver service at Tay Street. It’s really quite irresponsible to write that sort of thing when they chose not to have a reporter present. Had they been present they would have heard that council/ratepayers already cough up $1.4 million over the 10 years for a professional lifeguard service. Funding was created in 2008 to increase patrols to Tay Street and Papamoa. My informed information from the lifesaving sector is that the present situation copes well with the demand over the holidays.

Route K is budgeted to collect $2,178,538 and is now expect to pay itself off by 2041. This should make it more attractive for the Government to buy. Surprisingly we received no submissions on this subject.

How to measure the effects of inflation drew a debate. The Consumer Price Index (CPI) is a well known national measure but it is gauged by the price of food, alcohol, tobacco, clothing, footwear, housing and household utilities – all of which don’t have a great deal of bearing on council costs. Local government inflation, we are told, is better measured in a manner “that reflects the environment the council operates in.” The Local Government Cost Index (LGCI) measures nine categories – roading/transport, property, reserves/parks, water, staff, energy, pipeline, earthmoving, private sector wages. It is more relevant and reflects the great effects of inflation, which in turn increases the rates burden we are told. Reminds you of the rats on the roundabout doesn’t it?

Unfortunately central government seems unaware of the significant difference between CPI and LGCI and made comparisons that whilst politically attractive are largely irrelevant and certainly inappropriate according to Local Government NZ. You have to wonder how much successive governments are aware of how local government operates. They continually load up council/ratepayers with ongoing extra responsibilities and services, send no money, then bitch and moan about increasing rates. How does that work?

More stormwater issues are raising their heads, this time at Sulphur Point. It’s a longstanding problem where council owns land leased to an investor who has a building on it. $250,000 is the estimate to fix it and council will wait to see what options evolve from the marine precinct across the road that is currently awaiting expressions of interest so that the work can be co-ordinated. Internal submissions from staff some of which are items that have cropped up since the original draft were approved. Lots of roading projects, stormwater, wastewater and water.

A reduction of $12,145 in the elected members remuneration vote. There is $460,000 to be funded by a user pays loan for a trailer boat park on Keith Allen Drive opposite the boat launching ramp. As the port has taken back its leased land on Cross Road, the private boat park has closed. This will be the last opportunity for trailer boat owners to lease a permanent park near the ramp. Council does have some duty of care here. Allowing section sizes of 325sqm means there is no where to put a trailer, boat or caravan.

 

This week’s mindbender – a Chinese proverb: A man grows most tired while standing still.


 

Comments

ROB PATERSON

Posted on 22-06-2012 00:54 | By YOGI

More like Route Bill Amnesia of the desired kind.

CHINESE PROVERB REVISITED

Posted on 21-06-2012 00:36 | By PLONKER

A man grows most tired and so needs an afternoon nap while keeping a seat warm in Council Chambers!

SPINNING AT SPEED

Posted on 20-06-2012 16:28 | By TERMITE

The one thing that is working at TCC is the 100% ability to spin anything crappy into something wonderful, generally referred to as "Spin-doctoring" or "PR idiot magnets". What you read above generally falls in to that category above. The one item that doe snot is the heading Faulkner’s "Corner" he is really getting into a coner now with all the FITH concepts that get voted on and put to paper.

PUT IT ANOTHER WAY

Posted on 16-06-2012 10:57 | By POCO O POCO

Reading the miscellany above I would suggest it’s not a case of rats on the roundabout more like the rats are running but the wheel isn’t spinning.What is being trotted out here makes you despair it is about time TCC Councillors stopped sweating the small stuff and addressed the major issues like staffing levels getting value for money and knocking the ’nice to haves’ on the head.

ROUTE K AMNESIA

Posted on 15-06-2012 20:21 | By ROB PATERSON

Well CR.Bill Faulkner I for one made a submission on ROUTE K and I therefore find it difficult to reconcile your statement that" surprisingly we received no submission on this subject" and while I appreciate that you would have taken no notice of my submission and it would have in the mind of most Councillors been binned the moment I walked out of Chambers I will take the opportunity to enlighten you again. It appeared as item (20) on page 8 of my submissions headed’ The Route K Debt and read as follows:- "(20)THE ROUTE K DEBT (P.18) - If NZTA continue to refuse to take over Route K and the associated debt of $60m, then another more palatable option may be to reach an agreement with NZTA for it to assume liability for the annual interest payments of $3m+ with TCC retaining liability for the capital debt of $60m. NZTA would of course get all the future tolls revenue. NZTA would also need to enter into a binding agreement to take Route K debt within say 15 years. It’s a win, win situation as NZTA wouldn’t have to find the capital and TCC gets rid of a huge annual interest bill so the debt itself stabilises. This deal will probably end up costing NZTA $1 – 2m per annum and that’s small change for them. The other huge advantage for TCC ratepayers is that the debt remains on the books in the meantime as a TCC liability and so prevents TCC borrowing any more money to spend on other half-baked schemes, protecting ratepayers from Council ‘nice to have’ indulgences. This option should be realistic enough even for TCC to negotiate with NZTA as they probably have weekly meetings. If it all proves beyond the 550 TCC staff and Councillors capability, there are plenty of private individuals out there who may be able to broker a deal and give a lead to Council on how it’s done, assuming of course there is some goodwill from NZTA to enter into meaningful discussions. Speak to Mr. Bridges." I am certain there would have been other submissions on Route K too. My mindbender for the day in the circumstances would be - when a man assumes public office he should consider himself public property and accountable to the public. !

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