Napier City Council should only build crucial projects the city needs

Property Council believes Napier City Council must not fund projects from its reserves or borrow unless they are crucial for the city.

Property Council Hawke’s Bay Chapter has submitted on the Council’s Long Term Plan 2015-2025, arguing for the Council to push back on unnecessary projects even if it means delays.

The Council should determine whether the Pandora Pond Water Sports, the ‘Waverider’ wave generating pool, and the Destination Playground projects, which are all proposed to be funded from Council reserves, are essential.

The Pandora Pond Water Sports project is estimated to cost $5.1 million and a further ongoing $3 average per ratepayer per year, which add to significant costs.

“The question is whether the Council has considered alternative funding,” says Hawke’s Bay Chapter spokesman Jude Minor.

“The Council also needs to determine whether projects it is taking out loans for are really essential, such as building upgrading its own buildings that cost $6 million. If it’s dipping into its reserves, then it should only be for critical projects.”

Property Council believes that Government and ratepayer funding should not be the sole solution to project funding and the Council needs to be creative, adaptive and innovative and consider other funding mechanisms such as public private partnerships.

“The Tansmission Gully is a good example of lessons learned from such a breakthrough project,” says Jude Minor.

Property Council also believes the Council should charge fairer development charges, not increase rates more than the rate of inflation (expected to remain under 1% in 2020 and 2030), and replace business differentials with targeted rates.

“We oppose business differentials because they’re not linked to any specific cost incurred by businesses and are also are provided for to Council by higher value land,” says Jude Minor.

“It creates inequity and is an unwise revenue raising mechanism as it drives business elsewhere from the city, taking capital with it.”

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