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

Oh what a mission to consider this week. Staff officially advised elected members that the rates surplus from last financial year is $3.7 million. A rare bit of good news for ratepayers, but what to do with it?

We have received a variety of options all of which make good economic sense. Council policy is that the first $500,000 of any rates surplus be applied to debt retirement. Okay. But the rest of it is your money, paid by you last year. In my opinion any surplus should come off your next rates bill. Anything else that is done, economically sensible though it may be, does not guarantee benefit to those who paid in the first place. In fact already there will be a few ratepayers who paid up who are no longer ratepayers. But there's nothing that can be done under the rating rules to reimburse them. I'll let you know the final outcome when the decision is made.

At Projects and Monitoring the Art Gallery presented their annual report. They reported a busy year. Included in attendances were 9,500 school students. With a twinkle in her eye gallery director Penny Jackson said they couldn't take many more students unless the Gallery was expanded, a comment for my benefit I suspect, and I joined in the accompanying mirth. Financially the Gallery ended the year with a $60,437 surplus from a total revenue of $1,189,779. Ratepayers contributed $847,400 of this and Western Bay District Council made a grant of $33,000. The Bay of Plenty Regional Council don't contribute even though it could easily be argued that the Art Gallery is a regional activity.

Administration donations were $12,735 down 50% on an expected budget of $25,000 and down on last year's take of $20,917. Next year City ratepayers will contribute over $900,000.

Creative Tauranga gave their six monthly monitoring report. Contrary to urban myth ratepayers are not paying for the $800,000 Hairy Mclary project. Creative Tauranga told us that they had $300,000 in the bank towards Hairy Mclary and work on the sculpture is well under way. Unaudited accounts showed a surplus of $11,311 on revenue of $618,644. City ratepayers contribute $277,258 and Western Bay contributes $46,602.

On Council finances the Council Treasury officer reported the average interest rate on Council borrowings at 6.05% and this is slowing a short term tendency upwards. Rates revenue funded loans were $217.9 million of a net external debt of $371.1 million. Development contributions overview showed an increase in new dwelling permits – 64 in August compared to 48 last year.

In the open forum section of the meeting we were told again of on-going problems at the Mount Hot Pools. Fluctuating temperatures meant that the pools weren't hot enough. Apparently it's to do with the heat exchanger as the hot water coming up from the bore that heats the salt water is too hot to discharge into the harbour. The resource consent for this is being reviewed we were told. Just how too hot a temperature results in the pools being cooler is a little hard for mere mortals to understand. This Hot Pools saga just won't go away despite all sorts of efforts.

On other matters it's great to hear that the Port has finally got High Court permission to go ahead with dredging the channel so that much larger container ships can enter our harbour. The Resource Management (RMA) consent application has been a long drawn out process and no doubt hugely expensive. In the end we all pay for this. Yes, we need to carefully consider consequences of dredging but a lot of the carry on was not necessary – in my opinion – particularly the final appeal which added delay and expense in the order of four years and two and a half million dollars. Our city and regional economy desperately needs the port activity as the effects of PSA in kiwifruit and the economic downturn bite.

During a workshop elected members heard the latest technospeak buzzword that emanates from the Auckland Super City formation. It's called 'harmonisation”. That's the feel good reference to levelling of rates where some suburbs heavily subsidise others. Great news if you are getting the subsidy but a horror story for others doing the paying. Yet another highlight of how unfair the general rating system is. Bigger is not necessarily better and things aren't as rosy up there as Mayor Len Brown would have people believe.

On the local front we are in discussion with Western Bay District Council and others on rationalisation of services. Obvious things like planning rules, roading, dogs are amongst the possibilities for savings through economy of scale. Other things to be considered are how these services might be provided. No doubt water will come up! Government seems hell bent on removing water from ratepayer control. Like Metrowater in Auckland, a Council Controlled Organisation (CCO). This introduces the prospect of profit/surplus, taxation, director's fees etc – just like the legalised theft of electricity from taxpayers – in my opinion. Water, a basic right, should be kept under direct ratepayer control and supplied at cost. Just like now. It's not broken and doesn't need fixing. By the way, water is free. You only pay for its collection, processing and delivery.

A great turnout on Sunday for the opening of the Waterfront downtown in the CBD. It's been over 20 years since the first moves to give people a priority over car parking even though the reclamations were done in the 1960's for parking. A simple plan, much reduced from former grandiose plans showed that people are what are important – not structures. Well done to all involved.

The prospect of a new development industry coming to town was brought to elected members for consideration of a special assessment for Development Contributions. It's confidential what and who it is but will bring new employment opportunities if it comes here. Council is to negotiate to try and attract new business whilst being fair to ratepayers.

A lengthy discussion on a petition from ratepayers asking Council to appeal an Environment Court decision allowing amateur radio enthusiasts aerials. Council didn't approve these in the City Plan and radio operators appealed and won. Staff said, and those elected members involved agree, this was a 'poor court decision” but futile to appeal. Even if you win the same judge is sent back to review his own decision we were told. It's the nonsense that you come to expect from the RMA – and some Environment Court decisions.

This week's mindbender from anonymous – Since light travels faster than sound some people appear bright until you hear them speak.