5 March 2007

Sustainable growth focus for city budget meeting

Auckland City Council will meet this week to consider options for its budget and plans for the city for the next 12 months.

The focus for the council is how growth in the city will evolve in a sustainable way.

Auckland city's Mayor, Dick Hubbard, says that the long-term outcomes for the city depend on decisions made now.

"We are in serious catch-up mode," he said. "We are crying out for investment, but we are also determined to ease the load on the ratepayer."

Some of the proposals to fund the priorities for the city to be considered include: * spreading the cost of major projects more fairly across the generations through debt by borrowing so that those who benefit in the future also contribute * extending development contributions to cover future costs more accurately * some changes to building-related fees and charges

"The fact is, we have big projects we want to get started on but it's unfair to fund those exclusively from today's rates," he said. "Every business knows that debt, when well managed, is a prudent way of progressing and growing."

Chairperson of the Finance and Corporate Business Committee, Vern Walsh, says that Auckland City Council needs to consider a range of funding options so that rates are kept as affordable as possible.

The proposed policy would see the cost of large projects spread across both today's ratepayers, and those who would benefit from the infrastructure in the future.

Examples of these projects are the development of the waterfront, upgrading Aotea Square, improving city roads, new libraries for Otahuhu and Waiheke, volcanic cone protection and opening up public access to Westhaven Marina.

"Large projects could be funded by borrowing so that the rest of the rates could be invested on other priorities in the city," said Mr Walsh. "This is a change from past policy but we think it is fairer."

Mr Walsh says that many local councils throughout the country currently use debt to fund projects.

The proposed plans and budget outline the next steps to achieve the long-term vision for the city that was set out in the council's 10-year plan last year.

"Now we have a clear course, we need to start taking action and making positive changes through our investments," said Mr Walsh.

Other proposals outlined in the reports the council will consider are:

* An overall rates increase of 2.7 per cent which equates to a residential rates increase of 4.5 per cent.

* Continuing the council's extended rates rebate programme and making the postponement option available for people who have difficulty paying their rates.

* Projects in key areas, including transport, open space and volcanic cones, heritage and urban design, community development and affordable housing, city development and the CBD, will continue to be funded via targeted rates.

The council will look at using rates revenue on things like extending hours in community libraries, expanding CCTV cameras in the CBD to fight crime and introducing more walking school buses.

The reports the council will consider on 7 March are available at www.aucklandcity.govt.nz.

The draft annual plan, which will be published for consultation in April, will include the council's proposed budgets and plans for the public to give feedback on.

ENDS

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