The money go round!

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

An interesting (for elected members at least) round of meetings and workshops at City Hall this week.

Some were ‘public excluded' because of the requirement to let other parties involved know before they read it in the media. There's nothing you won't get to hear about soon.

The first was an update on the BOP Regional Council Infrastructure Fund. This is a fund created by borrowing $200 million by the Regional Council in January 2008 to assist regional development. Since then it has been invested, with a small percentage going to the restoration of the Rotorua Lakes. They borrowed it at a lower interest rate than they are getting as an investment and have been doing very nicely thank you. But this is a little naughty as it isn't the reason they borrowed it for and the IRD got on their case. So now the Regional Council are offering financial help for regional development but it will have to be interest bearing and a loan to be repaid otherwise it just becomes another ratepayer funded loan. And this money is to be spread across the whole region. The initial borrowing of $200 million in 2008 was for 10 years so there's only six year's left – unless the loans are rolled over.

Watch this space for a Regional Council rates increase spiral. They have lived off the Port dividend since their inception and have been heavily subsidising the rates they charge you. My bet is that the Regional Council rates will double in short order.

More attracting

An informative meeting between elected members and its member agencies – Priority One, Sport BOP, Chamber of Commerce, Tourism BOP to discuss a Major Events Infrastructure Fund. The idea here is to amalgamate financial resources in a Private/Public partnership to help fund major events here. Auckland has ATEEP a Council Controlled Organisation (CCO) which are not in fact, controlled in reality, by council. They are 'buying” events to attract people to Auckland. Like V8 Supercars. Rubbish this all you like but it will drag in petrol heads to help boost Auckland business. In Tauranga there is the potential to do the same on a much smaller scale. That is attract events – no not supercars – and provide financial incentives for existing events to remain.

Council/ratepayers put up $200,000 for flagship events and I for one think this has run its course and we need to move on. It seems most of my colleagues agree although as with these initiatives the devil will be in the details. Great political capital is made about consultative processes and this will be no exception in my opinion. So if it comes up in the future make sure you join in because the way consultation now works is that by and large only the views of those who submit (usually a huge minority) get their views considered. The silent majority can go largely unheeded and by the time they realise what's going on it's too late. Contrary to urban myth elected members do listen but those doing the talking get the main thrust of consideration.

Staying afloat

Next up was a workshop with the Development Community. There is now a new spirit existing between council and developers as we are all in the same financial boat. Council needs developers to take up the infrastructure that is sitting unused, awaiting the growth that was anticipated. Development Contributions are required to fund these loans as the interest, if unpaid, gets capitalised and added to debt. Unless it gets too much – as it did last year and $30 million DC debt got transferred to rates. C'est la vie.

We were informed by developers of an upturn in the market and developers quite rightly don't want to miss the boat by being held up with council red tape. We will do what we can but council is bound by Central Governments Resource Management Act (RMA). And that, as I've noted before, can be a real procedural nightmare where time is not of the essence. Mainly due to court interpretations since its inception in 1990s.

At Projects and Monitoring we approved the Pilot Bay walkway – eventually. Staff had done a great job in catering to all elected members concerns after an on-site visit. My concern was keeping the dinghies at Pilot Bay. Tony Christiansen was concerned for wheelchairs. Catherine Stewart in keeping the grass area. Murray Guy was concerned…and so on. Catherine wanted the width of the walkway limited to 2.4m instead of 3m and moved an amendment accordingly. After lengthy debate this was lost 7-4. Murray wanted 'Interpretation” panels and said the walkway would be ineffectual without them. More debate and this was lost 6-5. Panels may still go up depending on tender prices for the project. Most of us felt that the walkway was the priority. Finally the resolution to proceed according to staff recommendations was carried 10-1 with Catherine dissenting.

Elected members redesigning council's projects in the chamber during the debate has not been a formula for successful conclusions. A big bouquet to Port of Tauranga who are putting up $200,000 towards the project. A great gesture, thank you.

Another tree despatched and only 35 minutes this meeting. A Pohutukawa on Oceanbeach Road is causing significant damage to the adjoining house and council infrastructure. Council requires you to fix any damage your tree causes to council property so it's only fair that it works the other way. Common sense is slowly prevailing in these tree matters but taking up a council meeting to resolve these things needs addressing.

Engine braking by heavy vehicles is on the radar screen. It's a complex issue. Council can't regulate if it doesn't own the road. Like Takitimu Drive which is a State Highway. But we've put signs up banning engine braking anyway. Police are responsible for enforcement but not high on their priority list. Terry Molloy suggested a 'noise” camera. Not so silly when you think about it if there is to be meaningful enforcement. And those cesspits to the east of Takitimu Dive that no one except DOC wanted are silting up. As predicted. DOC thought they would be an asset for wildlife. Yeah right!

This week's mindbender from Nuggets – a man listening to a fool will learn more than a fool listening to a wise man.