Tauranga's looming 11.4 per cent rates rise is only reduced from a 17 per cent rise because the Tauranga City Council is not paying its debts.
According to the Ten Year Plan approved by the Audit New Zealand, the council is due a 17 per cent rates rise this year.
Instead, it will have an 11.4 per cent rates increase, achieved by reducing debt payments by $6 million from $11.9 million to $5.7 million.
'The whole thing was a con job right from the start,” says councillor Murray Guy.
The reduction in the rates increase was announced as an election play says Murray, but it wasn't achieved by anyone doing anything clever.
The city has simply reduced its debt repayments.
The 17 per cent rates rise and the previous level of debt repayments are included in the Ten Year Plan the council went to the community with and that was eventually approved by the Auditor General's office, says Murray.
Now the rates requirement has been changed, and councillors are again going through the city budgets trying to save money.
Councillor Catherine Stewart says a big chunk of the $15 million they have been told to slash could be done through canning the Mount Hot Pools upgrade, but that option hasn't been taken up.
Murray says another cost saving measure that is being ignored is a $600,000 requirement to replace gym gear at city pools.
If the city council sold the gym businesses, it could rent the space and also save the cost of replacement gear.
'They don't want to look at it,” says Murray.
Mayor Stuart Crosby is at a meeting in Wellington and could not be contacted.
18 comments
What a Joke
Posted on 27-01-2011 14:11 | By Jitter
If the city is in so much debt the TCC should be trying each and every way to save money and reduce rates in the process. If TCC are asked why they are not looking at canning these ridiculous costs on unneccessary projects ie the Mount Hot Pools, the old chestnut answer is rolled out " We can't tell you that as it is commercially sensitive". Of course it is (to ratepayers) which is why ratepayers should be told and be given a say as to which costly projects should go and which should remain. I agree with Murray Guy that the rubbish spouted during the election campaign by some councillors re reduction in rate increase was "a big con".
Debt and Rates
Posted on 27-01-2011 15:59 | By Steve Morris
In my view, tackling an outrageous potential rates hike of 17% by cutting non essential spending such as the gold plated Mount Hot pools option is better than reducing debt repayments (TCC debt is growing above $400m - one of the worst in NZ)
Absolute Power Corrupts Absolutely
Posted on 27-01-2011 16:51 | By Lostzone
I agree with the previous comments. "WHY" are those options not being seriously investigated. What are our new councillors doing about it? Another area that uses ratepayers money is The Historic Village. Yea I know 'admin people' will tell you its self funding I say rubbish 'prove it'(I know cos I have been and asked). It is another grossly underused facility that could be generating funds back into the council coffers. Is/have all administration departments had a full physical (as in some one on site and asking the hard questions) audit been done? We must be sure departments are operating efficiently and we are getting value for money. I would gladly do it,there is 'no' need to hire expensive consultants that work off site. From my experience there would be a 'minimum' saving on operational costs of 10%. Much of the work could and should be contracted out just as roading refuse etc. If there is not all ready a "Citizens Monitoring Council" group maybe its time there was.
to LostZone
Posted on 27-01-2011 17:47 | By morepork
The trouble with a Citizens Monitoring Group is that it would be appointed by the Council. And besides, isn't that exactly what the Council is supposed to be? We elect them to support our interests. If they don't, we have the mechanism to change it, but most of us can't be bothered. (When was the last time we had a full turnout for local elections? Ever?) It seems to me, we get the Council we deserve. I agree with all the previous posts and I do believe we could live without a Hot Pools upgrade(although I enjoy that facility very much) until such time as we can afford it. Servicing debt, as every prudent money manager knows, is a high priority. The sooner you reduce debt the more REAL money you actually have to use. As it is in the Household, so it is in Commerce. The Politics of Council are such that there will always be someone who disagrees with others and there will always be someone who claims a "con" if they see someone else getting credit. Is an "honest politician" a contradiction in terms? Very occasionally you find one who sees past the posturing to the real issues that people are concerned about. I believe our elected MP may be such a man, but I'm not sure about Mayor Crosby...Why does our current Council have a reputation for arrogance, rather than listening? What is the Mayor doing to change this perception? As the Sallies say: "We're all in this together" and the future of our City is important for everyone who lives here, not just Ratepayers. The Council need to ensure that they are in touch with what people are concerned about. So far, the evidence is not convincing.
A disgrace!
Posted on 27-01-2011 18:15 | By grahamwood
In a time when business people are struggling to make ends meet and some houseowners are on a knife edge...In a time when pay increases are running at about 2% if you are lucky enough to have a job... In a time when many countries around the world are forced into cutting costs in draconian fashion ... in a time when whole American States are facing bankruptcy... our council wants to impose a double digit rates increase on ratepayers still punch drunk from this year's rates increase! Dump that hot pool project and sell some assets TCC..and quickly.
rates
Posted on 27-01-2011 18:23 | By Glen Clova
Back to normal MG spent the last 3 yrs moaning about anything and everything the council did ,he still has a huge chip on his shoulder that he missed out on the Mayors job.Why cant he just get on with life and work with the council to get this beautiful city up where it belongs and out of dept with the minimum amount of services we all enjoy.
Morepork and others
Posted on 27-01-2011 19:42 | By Lostzone
The "Citizens Monitoring Group" would/could be a group of concerned citizens that maybe went regularly to council meetings,organised questions to be ask and pursue them,challenge council decisions when appropriate, I am sure you get my drift. The group would not be appointed by council. It would be a stand alone organisation that could also rally support from other groups, Grey power, Aged Concern,various rate payer groups etc etc. We see lots of letters to The Editor that never seem to get answers. (This is not a go at The Sun, they can not do it all.) Another task the "CMG" (maybe it could be Citizens Monitoring Council CMC)could do is follow these questions up and report back to "The Sun" There are many intelligent capable people with time on their hands that would enjoy being involved. The problem most have is that some one needs to put it together. Sure is something I will look at ~ any offers of 'any' support greatl appreciated.
How do they sleep at night?
Posted on 27-01-2011 22:03 | By wreck1080
Knowing the debt burden they've imposed on ratepayers.
A Con Job???
Posted on 28-01-2011 12:22 | By SpeakUp
Where is the accountability of these public servants for financially ruining this city? Where is the mandate for these administrators to waste ratepayers' money on Council's delusional grandeur? What is their right to make everyone in this city a debtor? These people take advantage of our hard-earned money. They don't produce. They misappropriate and extort and redistribute our saving for Council non-core spindrift agenda. This is outrageous and will find entry into the chronicles of Tauranga. Yes, most of the Councilors of the last 10 years will be remembered by name not for their fancy pet projects but for ransacking Tauranga's funds and ruining many ratepayers. However it should not be forgotten that these officials wouldn't be in office if it were not for the naïve Dodos who vote them in. There was a time when Con Men were tarred and feathered. Well, looks like the future could be ‘interesting'. "A nation of sheep will be governed by wolves." ---Edward R. Murrow---
Democracey
Posted on 28-01-2011 12:32 | By The author of this comment has been removed.
People, we are all being kept in the dark and feed on ********! Their is always a hidden agenda with all MP's and councils alike. We as citizens vote and the voting system creates the outcome, which seems to revolve around how well one can con the public and how fat ones back pocket is. What is actually going on behind the scenes that enables our elected councils to go against what is seen by the majority as wasted spending to continue, and then put the cost of unpayed debt created by these councils back on the rate payers. If each individual was made to be financially responsible for their actions within these institutions I guarantee there would be less debt and better value for the rate payers. The World has always revolved around the minority taking control and manipulating the majority to get its own way! Regardless of the outcome. Its time That the majority stood up and said no more!!!
Guess who had the steering wheel
Posted on 28-01-2011 12:42 | By Ratcatcher
All of the above criticism makes perfect sense .But just remember it wasn't the blind man or the three brass monkeys or the turkeys driving the sinking ship it was Mayor Stuart Alan Crosby and his pack of merry carefree souls.Don't bleat Tauranga you reelected them to 'control' your fortunes and destiny. R.I.P
LITTLE BOO PEEP HAS LOST HER SHEEP ....
Posted on 29-01-2011 10:46 | By The Master
No different now or then, they are making all the right noises, jaws are a flapping, noise is being made, but in the end little boo peep can not find her sheep.
ELECTION PROMISES
Posted on 29-01-2011 10:53 | By The Master
FIRST - Independent staff audit SECOND - Essentials before luxuries THIRD - Proven leadership. In end result the ones now trying to remedy what has been obvious for years now are in fact the same ones who created the mess to start with. Just look at where some $180 million has gone already (Mt Greens $33m, Baypark $12m, TISEC $45m, Art gallery ...) look at what is coming: Southern Pipeline perhaps $500m, Strand "development" $30m, Museum $20m and these are mad-hatter schemes we know about. They all just cost a ridiculous amount of money and make massive losses every year that add more to the debt than ever before.
REDUCE DEBT REPAYMENTS NOT THE ANSWER
Posted on 29-01-2011 10:56 | By The Master
In hard times a "normal" reaction is that one needs to increase the debt reductions made not reduce them. To do this just pushes ahead of us the problem into the next year with more interest to pay then.
Lets pay more interest then
Posted on 29-01-2011 15:55 | By THE RING MASTER
Not paying debt means more interest this year and every year.
Hello Murray
Posted on 01-02-2011 19:42 | By Lostzone
Howdy Murray Are you genuinely interested in getting the rate increase down? If so are you interested in hearing and acting on genuine ideas of how that can be done? Hear how it is done in the real (private sector) world - with respect! Murray imagine if you went to council with even one way the rate increase could be further reduced. What about how your voters would feel with a press headline "Cr Murray Guy gets rates increase further reduced" Are you genuine about the situation Murray? I am! Sunlive has my contact details. Cheers
Action not words
Posted on 02-02-2011 18:59 | By morepork
How hard is it to manage a City, as opposed to a household? Don't the same principles apply? Reduce debt as quickly as you can, don't buy things you cannot afford. Sure we'd like to extend the hot pools, build a museum, redevelop the Strand, but why would we do that when we are saddled with crippling debt already? To keep up with the Joneses? We need better leadership than that. All non-essential projects should be postponed until debt is reduced to an acceptable level. Why aren't they being?
Not the answer
Posted on 10-02-2011 14:58 | By THE RING MASTER
Not paying off debt is no answer, reducing costs is and the only way left to do that is cut staff numbers
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