City Plan: Have we got the mix right?

North Shore City Council is asking residents for their feedback, during the City Plan consultation, on how much to invest in the 15-year planned capital programme and what the accompanying levels of debt and rates should be.

Mayor Andrew Williams says the council has worked hard to put together a fiscally responsible budget with debt projections that are within the limits set out in the council’s Treasury Management Policy. However, it really is up to the community to tell their council what they want.  The draft plan has received an unqualified audit opinion.

“Your council has lower debt limits than other councils in high growth areas and our auditors have commented that the plan is a conservative and balanced in relation to debt projections. 

“Your council is being conservative as it ensures a good debt level compared with assets and is best placed to access different funding markets to achieve its debt programme at least cost,” he says.

Debt levels are driven by the new capital programme. Changes have also been made to the new capital programme to maintain steady progress for the city during tough economic times.

Last year (2007/08) saw the council complete its biggest ever new capital programme to the tune of $138m. This year’s programme (2008/09) at $152m is even larger due to the Wastewater tunnel and outfall project ($116m) and has a flow on impact into the future years’ funding requirements.  The proposed investment in 2009/10 on new assets is $117m.

Care has been taken not to burden today’s ratepayers unfairly with all the costs of new assets, instead each generation should pay a fair share of the cost of infrastructure that will last many years and that they will benefit from. 

The raising of debt to fund these new assets is the way the council can spread the cost over a longer period and provide a fairer and more affordable way of paying for the assets. This is the approach recommended by the Local Government Rates Inquiry. 

The alternative approach would be to have significantly higher rates increases to fund the new assets or significantly reduce the capital works programme.

In the draft plan, debt levels are forecast to rise from $347m to a peak of $671m in 2019/20 before falling to $336m in 2023/24. 

Mayor Williams says that now it’s up to the people of North Shore to tell the council what services and facilities they want and how the council should pay for them.

North Shore residents are invited to attend an open day and to give feedback on the draft plan during the five week submission period up until April 24.

The final open day will be held at the Rawene Community Centre at 33 Rawene Rd in Birkenhead on Thursday, April 16. People are invited to drop by any time between 4pm to 8pm

The draft plan and feedback form are available online at www.northshorecity.govt.nz/cityplan, from libraries and area offices or by calling Actionline on 486 8600.

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