Communities will have to help pay: Cull

Dave Cull
Dave Cull
Communities across Dunedin will need to do more to help pay for projects, as the Dunedin City Council grapples with tight finances threatening to curtail spending on key ventures, Mayor Dave Cull says.

The warning came as councillors met in public yesterday for the start of a two-day meeting to discuss the council's 2012-13 pre-draft annual and long-term plans.

The early budgets forecast a 4.7% rates increase from July 1, but councillors were also grappling with a list of about 40 unfunded projects - including the proposed $11.5 million Mosgiel pool and a new South Dunedin library - yet to be included in the council's spending plans.

The projects had been pruned following instructions to staff to reconsider all discretionary spending to ease pressure on rates.

However, it emerged yesterday councillors had spent much of Monday's workshop - held behind closed doors - determining the priority in which the projects would be ranked.

Mr Cull yesterday told councillors it was clear from Monday's discussion councillors were "of a mind" to include some projects in council spending plans.

However, the council's financial position meant the community would have to do more to help raise money for future community projects, he said.

"My concern is that ...increasingly community projects are going to have to be funded in a partnership with council and community groups. I think in future we will find it isn't within council's means to just stump up with vast amounts of capital."

It was a funding model demonstrated in the past with the Portobello jetty project, involving council and community funds, and also the model intended to fund the reopening of the Caversham tunnel to cyclists.

Mr Cull's comments came as councillors yesterday engaged in an at-times fractious debate, with disagreement over whether unfunded projects to be included in spending plans should be decided yesterday, before the draft budgets were presented for public consultation.

Some councillors believed the draft budgets and a list of unfunded items should be released to seek public views on their merits and affordability.

That would allow councillors to have one debate after consultation and decide which projects were added to budgets.

Others rejected the idea, arguing the council should make hard choices before consultation and provide the community with more information about which projects were in or out, and the likely impact on rates.

The debate continued for more than an hour, until Mr Cull recommended the top five projects identified at Monday's workshop be included in the draft annual plan consultation.

That was an indication the council was considering funding them, he said.

The top five projects, in order, were a new Maori consultation model, Ocean Beach erosion work, Caversham tunnel work, repairs to the St Clair sea wall, ramp and stairs, and a new council energy plan.

The Maori consultation model was part of work by Ngai Tahu and councils across Otago to improve the way they communicated, and the council's share of the project's costs was just $8000.

Most of the other four projects in the top five also had little or no cost attached to them for the council, meaning rates could still be kept to 5% if the projects were included in the 2012-13 budget, Mr Cull said.

The rest of the projects would also be included in consultation, but on the basis they remained unfunded.

However, Mr Cull's move prompted more disagreement, as some councillors argued other projects should be added to the list of those likely to be funded.

That led to the council's share of the Blueskin Bay library ($745,000) and priority parts of the strategic cycle network ($1.5 million over three years) in South Dunedin also being added to the list, potentially adding to upward pressure on rates.

Cr Bill Acklin said the council, by deferring its share of funding for the Blueskin Bay library, would come as close as possible to breaking a contract, and should stick to its originalcommitment.

Mr Cull agreed, saying delaying the spending would send "a very bad signal" to the community, and leave the council with "no credibility".

However, that meant funding for other projects might need to be reconsidered, he warned.

"It may be something else has to come out," he said.

Cr Syd Brown objected to the inclusion of the priority parts of the strategic cycle network, given its ranking at No 22 on the list of unfunded items.

"I have a real issue with this one ... we are now pulling things from the bottom of our list and starting to reprioritise them.

"We should be looking at the whole list," Cr Brown said.

However, Cr Jinty MacTavish argued the work was needed, as the council's pre-draft budget - as it stood - contained spending of just $224,000 on cycleways in 2012-13.

That was "absolutely unacceptable", given the prevalence of crashes involving cyclists in Dunedin.

She said $224,000 was inadequate to be protecting lives on our roads.

The debate came after Mr Cull, speaking at the start of yesterday's session, urged councillors to strive for consensus.

"I imagine there won't be a single one of us who, at the end of this meeting, will be 100% happy," he said.

The meeting continues today.


Top five projects
• New Maori consultation model.
• Ocean Beach erosion work.
• Caversham tunnel work.
• Repairs to St Clair sea wall, ramp and stairs.
• New council energy plan.

 

Clamps down

All the community organisations already on a shoe string, starved by the money thrown by the millions at the stadium, now have the clamps down on them even more. Totally wicked.

Decision making

How about the Council following a decision-making process that is open and transparent, where all the criteria are available, and where all relevent documentation is freely accessible to those who pay the piper.

If decison making is an issue for the Council as well as the construction and recording of the criteria and processs followed, there is of course the locally developed software 1000Minds

See www.1000minds.com

 

 

Council projects

This council can't afford any thing but essential spending. The last council has seen to that.

If councillors from the last council wish to continue to push for spending on luxuries we can't afford, they need to go.

Is the Town Hall project essential? 

Whose ineptitude?

For me the most crucial thing to ask is whose ineptitude lead to the city funding the fiscal blackhole stadium? Many of these men are on council now and making decisions about how our city deals with the debt they created. I refer to Clrs Hudson, Brown, Bezett, Collins, Acklin, Noone et al. They also wish to be returned to council at next year's election. Can we reley upon these indivuals to fight very hard to keep our assets; they must have known that the only way they could pay for their stadium folly was through selling assets to lucky 'stakeholders'? We simply cannot look to the people who created this mess to get us out of it.

Supporters' views please

Seems those stadium "naysayers" were right that it would cost more than we were told, and that we couldn't afford a shiny new stadium.

Comments from stadium yes-please-build-it-any-cost supporters welcome. I'd really love to know how you justify my rates going up to fund the stadium while things that I value are being cut to also pay for it?

Rugby community

It's quite obvious to me that you should start with the rugby community - I totally agree with MikeStk. All those millions spent on rugby at the expense of all else, so unnecessary for a small city like ours. I shake my head when I read comments such as Jinty MacTavish's about the cycleways budget being so small, it sure is. Rugby got so much, where does it leave everybody else? And where does it end?

 

Project ranking system

Important factors for ranking the importance of any Dunedin project (an attempt to deduce from available evidence for the benefit of TheWatcher) are, is it highly visible?  Pipes and stuff are out of sight and very boring.

Is the council manager pitching it good at painting a picture of fabulousness, picking the lowest of all possible costs and the greatest of all possible benefits and suggesting that its creation will shine glory on councillors and/or the city?

Do you get steak knives with it, and meetings with lots of yummy savouries?

Re: Project ranking

This is a very good point. I used the Kepner-Trago system when I worked for a large blue-chip. These systems can't make decisions for you but they do make a clear record of the criteria and exactly how decisions were made - woolly arguments do not fly. This does keep the decision-makers honest. Based on the history I've seen, I'm not sure the council would like this kind of system!

Some perspective

We were told the stadium would only cost us ratepayers about $30 a year. Now it turns out the stadium is costing us a lot more - even just to keep it operational. After many years of rises we should have a below or equal to inflation increase in rates. 5% is way too high. What did the stadium do this January? How much money has it lost in its first few major events? How much money is it going to cost in February? It is time to recognise this is a sunk cost. Dismantle it, sell the building materials to Christchurch. The ORFU and Highlanders can rent Carisbrook. 

Project ranking

Judging by the publicised feedback from the closed council meeting on project ranking, it would appear that the council have no wish to use any recognized decision-making system to rank projects in an unbiased manner. There are several commercial systems in use world wide. But the Council still rolls on with no system at all. True, or false?

Communities doing their share

Let's start with the $460m elephant in the room (stadium total cost now up from $360 due to Athol's unilateral change to its financing - come on you can do it, almost there, almost at the full half billion, I'm sure something will be 'found'). After all it's the thing that's causing all the city's financial strife.

Let's start with the rugby community - let's make sure they pay their share of the city's problems - let's raise rugby ticket prices so that they can pay their share of all that extra 100 million dollars of rugby interest we're all being stuck with this year.

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