To: Chief Reporter
From: Kristi Gray, Communication Team
Date: 16 February 2009

Christchurch City Council media release

Councillors debate recommended Long-Term Council Community Plan

Mayor Bob Parker told Councillors today they were debating financial decisions in a time that has been described as the greatest economic uncertainty since the Great Depression.

“While some of the impact experienced around the world has yet to be fully felt in New Zealand, we don’t know how deep this recession will be. It is important we take a conservative position that reflects the potential economic downturn,’’ he said.

“I believe we have a draft LTCCP that seeks a way forward in a number of key areas and it will focus on infrastructure. At the same time, one of its major achievements is that we have managed to keep rates below 4% over the next 10 years,’’ he says.

Two major factors were underlying this draft LTCCP, says Mr Parker.

The first was an assumption that there would be 40% less growth in new ratepayers over the next year.

“This drop will have a strong impact. Some experts say in the second year we may begin to return to normal with a 25% drop in new ratepayers and by the third year we may be back on track..’’

“The draft plan reflects this by altering the timing of some projects to reflect these decreases. Every 12 months we will produce an annual plan update to the LTCCP, so if the growth increases or, in the worst case, drops below the assumed 40%, we have the ability to readjust accordingly.’’

The draft LTCCP also reflected the 2007 Government Commission of Inquiry into rates which recommended that councils should spread the cost of large infrastructure projects across several generations, rather than expecting one generation to bear all the costs.

“Ratepayers can end up being charged three times, first for funding the project, second for depreciation and then thirdly for maintenance,’’ Mr Parker says. “We need to undertake infrastructure projects, but review the level at which we rate for depreciation. Instead of funding projects from the depreciation pot which must be filled annually from rates, it is more equitable to borrow for long-term capital projects and spread the costs over the generations who derive actual benefit from the project.’’

There was also a need to put projects on the table for additional funding from central Government, rather than expecting it to all come form rates, he said.

“This recommended draft plan reflects the best work of staff which will be filtered through this governance body,’’ he says. “It is important to remember that these statements of proposal are not the final decision. It may now be crunch time, but not the final crunch time as the draft will be handed out to the community for full discussion and submissions will be heard by Council.’’

Among the proposals accepted was the setting up a charitable trust to enable companies and/or individuals to make tax deductible donations which could be used to fund qualifying Council expenditure.

The draft also recommended setting up the Christchurch Agency for Energy which will implement the Sustainable Energy Strategy for Christchurch 2008-18 action plan and promote its vision and the ideals of energy efficiency and renewable energy.

The $4 million for this fund came from the sale of carbon credits to British Gas.

Councillors voted to accept draft proposal that transfer of the ownership of the Christchurch Town Hall to the Council-owned VBase to ensure the protection and repair of what was described as one of Council’s iconic assets.

A draft proposal that the Edgeware Pool site be cleared of contaminants. The former pool site could then be sold for residential purposed and the net proceeds be used for the development of a community centre in the area, A community garden would be built in the access way off Trafalgar Street.

It was also proposed that Council and the community enter into a mediation process to resolve the differences that have developed in recent years.

Mr Parker says “As a Council we needed to make a decision on this issue to give leadership and so we can have full consultation with the community. The decision reflects the findings of the community working party setup by Council to consider the future of the Edgeware pool site.’’

Council also proposed the extension of the city tram route.

ENDS

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