A Dunedin City Council facing unpopular
rates rises, and fresh from election promises of financial
prudence, will tomorrow start discussing a staff report that
has identified $794,300 of cuts for the next financial year.
The proposals follow resolutions from the council calling for
more savings than the $4 million slashed from the budget at
the end of last year.
So far, at least, they have been delivered without too much
pain for staff, council projects, or service levels, but
Mayor Dave Cull was adamant last night more cuts would come.
The report, from council financial planner Carolyn Howard,
will go to the city's annual plan hearings deliberations, due
to start tomorrow morning.
The council began considering the year's finances after a
cost-cutting drive led by former chief executive Jim Harland
late last year aimed at slashing $6 million from the
council's spending.
The drive eventually trimmed $4 million, and the council now
faces a 7.5% rates rise.
Mr Cull indicated he considered that too high, and a February
7 decision by the council set up departmental review groups
to work with acting chief executive Athol Stephens to
identify operational savings to reduce costs.
Before that, they were to work with Mr Stephens to find
savings for this year's annual plan, with those savings to
have a minimal impact on service levels.
Ms Howard's report said as many of the 41 reductions found
were ongoing, $7.1 million would be saved over the next 10
years.
Mr Cull said he expected the report held the last of the
savings for this year's plan. Further cuts from departmental
reviews would have to wait until 2012.
While the results were "gratifying", more had to come, and
that would take time.
The largest saving for the next year was $200,000 from water
and waste services.
That included savings from using in-house provision of
mechanical and electrical services, rationalising the way
chemicals were bought, and from increased rental income.
Other savings in that department included $50,000 a year for
reducing water pressure and $50,000 a year from longer
"response times".
Asked about the apparent ease of finding the savings when the
pre-Christmas cost-cutting drive had been so recently
completed, water and waste services manager John Mackie
yesterday said he had been calling for the changes for years.
To agree to the savings would require "spirit and fortitude",
as there would be complaints.
Chemicals, worth about $1.5 million, had been bought by three
separate council entities - water and waste, aquatic services
and Delta Utility Services.
Water pressure in Dunedin was too high in some areas, and
could be easily lowered, although some residents would
complain, Mr Mackie said.
The savings would include less water and fewer chemicals
being used, and fewer leaks and breaks in pipes.
Not filling a retiring building control officer's position
was expected to save $74,000 and retaining the parking
officer vacancy $30,000.
Customer services identified a $35,000 saving if the i-Site
Visitor Centre was shifted to another Princes St address, as
it had suggested, and marketing communications found $25,000
by deferring buying Christmas decorations.
Finance, strategy and development chairman Cr Syd Brown said
a new chief executive, when appointed, would have a mandate
from the council to make long-term changes, with support and
co-operation from senior staff essential.
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