City councils that want to open art galleries, museums, and invest in business ventures like the Mount Hot pools could be forced to allow ratepayers to make the decision.
Local government minister Rodney Hide is considering law changes that could split council spending between core services and ‘extras' that will require ratepayer approval.
Rodney has not listed all the core council responsibilities yet. He says it will be a wide definition encompassing running libraries, transport, water reticulation and rubbish collection
Activities falling outside core spending may be put to ratepayers' vote on a case by case basis.
He also wants ratepayers to indicate how much they are willing to pay in rates increases.
The ideas are part of proposals to trim local government spending.
An analysis of draft 2009 - 2019 long-term council community plans (LTCCPs) shows local authorities across the country are planning significant rates increases over the next 10 years to fund extra spending.
Councils are planning a 41 per cent increase in total operating expenditure over the next 10 years, despite attempts to cut costs.
Planned capital expenditure will total almost $31 billion over the same period. If councils confirm this expenditure in their final LTCCPs, it will mean an overall increase in income from rates of 48 per cent by 2019.
'These are hard economic times and councils need to think about the cost and affordability of services in their areas,” says Rodney.
'They need to think about the broader impact of decisions they make in the next decade, not just the impact over the next two to three years,” he says.
Cabinet has authorised a review of the Local Government Act 2002 to improve transparency, accountability and fiscal management of local government. Rodney wants the act reviewed to ensure ratepayers and citizens have better tools for controlling council costs, rates and activities.


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