16 July 2009
Uncertainty over infrastructure and community project funding under the ‘super city’

North Shore City Council has written to the Local Government Minister and the Auckland Transition Agency (ATA) seeking guidance on the future of the Council’s development contributions used to fund vital infrastructure and community projects.

The transition to the ‘super city’ has brought uncertainty over this central plank of local government financing, and Mayor Andrew Williams is concerned over the potential fallout for ratepayers.

“We are calling for the Minister and the ATA to pay urgent attention to this highly significant issue to ensure that the interests of ratepayers are safeguarded and that essential infrastructure investment is protected. The basic question we have asked the ATA is: how will projects constructed in anticipation of growth be funded should this important source of funding disappear under the ‘super city’?”, Mayor Williams said.

Development contributions bring in around $15 million each year, and provide crucial funding for projects such as Busway stations, the Wastewater tunnel and outfall, the Birkenhead Library and parks acquisitions included in the city’s long-term council community plan.

Mayor Williams said “As a Council, we have undertaken public consultation on the city’s Long Term Council Community Plan (LTCCP) and both the Council and the ATA have signed it off. Now, people are starting to ask me how these projects will be paid for should the development contribution disappear in 15 months time.”

“Development contributions have been hotly debated in the past, but there remains widespread recognition that without this source of funds the ability to progress key infrastructure and community projects is jeopardised. The only alternative would be to fund these projects out of rates or debt, which would lead to the new Auckland Council having to impose hefty rates hikes,” said Mayor Williams.

“We are seeking guidance from the ATA, who call the shots on long-term council spending until the new ‘super city’ takes over, so we can adequately prepare for the transition and so that North Shore residents and ratepayers will be in a better position to debate the issue with the new Auckland Council once it is formed,” Mayor Williams said.

“Once the dust has settled, and the North Shore City Council consigned to the history books, it will be up to the people of the North Shore to determine how they want development contributions accounted for under the ‘super city’, and how they want their infrastructure and community projects funded. This is a conversation they will eventually need to have with the new Auckland Council. We simply want to make sure people are aware of the issue and have the information they require to have that conversation,” Mayor Williams said.

ENDS

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