Two interesting articles appeared in the Dominion Post on Saturday 20 November.
The first - 'Auckland Council told to cut $48m from expenditure. The new Auckland council has to find ways to cut $48 million from its spending to limit rates rises to 3.9 per cent.”
The second - ' Taupo council layoffs. Up to 40 Taupo District Council staff are expected to be made redundant as the council looks to trim $8 million from budget expenditure. Chief executive Rob Williams said yesterday the cuts would include about $2 million from council salaries.”
These are only part of of each news item but the above cover the main points.
Two simple examples that the freshly elected Tauranga City Council Could follow. If these councils can find major ways to reduce costs and ridiculous rate rises why not TCC ? Both examples are down to earth ways to reduce massive over expenditure and charges on the ratepayer.
It has always puzzled me why TCC staff numbers continue to increase (now I believe around 450) when many council functions have been outsourced. When large private corporations out source major functions their staff numbers usually drop dramatically.
I will be interested in the TCC response to this letter.
Roger Bailey, Papamoa Beach.
Council response:
Thank you Mr Bailey for your letter.
It is difficult in very few words to respond sufficiently to your enquiry but i'll try.
The rates rises forecast in the 2006/16 Ten Year Plan reflected the need for Tauranga City to fund the infrastructural development our rapid growth required - although a temporary slow-down in growth has meant that some projects have been spread out over time or deferred. This led to a reduction of $4.7 million in rates (over the past three years) from that which was projected. In addition to this, last year, the elected members asked staff to find $2.5 million in operational savings without reducing levels of service or customer satisfaction. These savings were largely achieved - including a commitment to consider each vacancy that arises as an ‘opportunity' - and are permanent savings (ie not just for one year).
Savings made are generally used to retire Council debt. This is considered financially prudent.
In addition to finding savings new forms of revenue are also considered by elected members as a way to reduce rating requirements. Last year, for example, the Council considered increasing the cost of new release library books. Following consultation with the community they decided to leave charges as they were.
The issues and options around savings and levels of service are ones the elected members will again consider as they review the first round of budgets for 2011/12 draft Annual Plan in mid-December. They will however only make decisions after public consultation has been completed and the residents of Tauranga have had their say.
Elizabeth Hughes, Communication Manager
Tauranga City Council
Note: in the past twenty years the population of Tauranga has risen by about 45,000 residents.