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MINUTES
117TH MEETING
OF
THE CHRISTCHURCH CITY COUNCIL
MINUTES OF THE PROCEEDINGS OF THE CHRISTCHURCH CITY COUNCIL
AT A MEETING HELD AT 2.00 P.M. ON TUESDAY 30 APRIL 1996
PRESENT: The Mayor, Ms Vicki Buck (Chairperson).
Councillors Oscar Alpers, Carole Anderton, Graham Berry, David Buist,
David Close, Graham Condon, David Cox, Anna Crighton, Newton Dodge,
Carole Evans, Morgan Fahey, Gordon Freeman, Ishwar Ganda, Pat Harrow,
Ian Howell, Alister James, Lesley Keast, Charles Manning, Garry Moore,
Margaret Murray, Denis O'Rourke, Gail Sheriff, Barbara Stewart
and Ron Wright.
APOLOGIES: Apologies for lateness were received from Councillor David Close who arrived at 2.10 p.m. and from Councillor Alister James who arrived at 2.35 p.m.
1. CONSIDERATION AND ADOPTION OF DRAFT ANNUAL PLAN FOR 1996/97
The Mayor moved the adoption of the nine recommendations contained on pages 11 and 12 of the report of the Strategy and Resources Annual Plan working party, subject to the amendment of recommendation 2 to provide for a 2.7% overall rate increase. The motion was seconded by Councillor Moore.
(2.10 p.m. Councillor Close arrived)
Councillor Close then read the following statement:
"In accordance with the resolution of the Council, the Strategy and Resources Committee met to consider a report from the City Manager on options to reduce the projected rate increase for 1996/97. As a result, the Committee has made adjustments to both the operating and capital expenditure over the next few years. The rate increase recommended by the Committee for 1996/97 is 2.92%, compared with 3.9% in the original draft budget recommended to the Council. A marginal reduction to 3.38% has also been achieved for 1997/98, but the projections for 1998/99 and 1999/2000 are slightly higher than the increases projected in the earlier draft. However, as the following table shows, the increases projected for the next few years are consistently lower than those adopted by the Council in 1995:
Projected Rate Increases
1996/97 1997/98 1998/99 1999/2000
1995/96 Plan 3.80 4.49 3.67 4.02
1996/97 Draft 3.90 3.49 2.98 3.00
1996/97 Current Draft 2.92 3.38 3.21 3.32
1996/97 Chairman's Proposal 2.76 3.33 3.14 3.24
I urge Councillors to break with the habit of Councils since 1989, who have adopted a "spend now, pay later" attitude.
A number of Councillors have expressed concern about the level of borrowing projected over the next few years. However, I can give assurances to the public that our borrowing is comfortably within the strict guidelines of our financial management policy, which has been approved by the Audit Office and by Standard and Poors, the international credit rating agency. It is nevertheless important to aim to keep all capital projects within budget, to avoid initiating new capital projects, and to reduce capital costs wherever possible. It is pleasing to note that in the revised draft budget the borrowing requirement for 1996/97 has been reduced by $3 million to $48.53 million. As has been demonstrated at a recent seminar meeting, the overall borrowing for the years 1995/96 and 1996/97 has not increased above that shown in the current Annual Plan. Since the revised draft was prepared, I have identified further capital savings which I will deal with shortly.
I have been disturbed by the explosive growth of expenditure in some parts of the central city budget and I intend to introduce amendments to make savings from 1997/98 and onwards.
Concerns have also been expressed that it may be difficult to achieve the level of income from non-Council sources for major projects. If this should occur, the Council has three options; it can defer some of the enhancement projects, it can reduce its costs on the projects, or it can use some of the unspecified capital expenditure incorporated in the budget from 1997/98 onwards.
Finally I would urge both Councillors and the public to ignore the misguided, ill-informed criticism which has been directed at the Council in recent weeks. Certain businessmen endlessly complain about rating levels in Christchurch, claiming that rates are excessive, that the Council is inefficient and extravagant, and that Council expenditure is damaging the economy by taking a larger and larger share of the cake. These claims are, quite simply, untrue; the facts are that Christchurch City's rates are lower than those of any other major city in New Zealand, and Council expenditure is taking a decreasing, not an increasing, proportion of gross regional domestic product. The tables I have circulated with this statement provide evidence of this.
Our aim must be to provide leadership in keeping Christchurch at the forefront of cities in New Zealand and Australia as a place to enjoy living and do business. While doing this we give the ratepayer value for money not just next year, but every year. I am determined that Council finances will be managed prudently and that expenditure will be kept under control. I would like to thank the City Manager, his staff and the members of the Strategy and Resources Committee for the additional work they have put in on the revised draft budget. I have pleasure in moving the recommendations of the Strategy and Resources Committee subject to the provisions in my motion, which will result in additional savings to the ratepayer in 1996/97 and subsequent years."
Councillor Murray then moved "That Standing Orders be suspended for the next 30 minutes". The motion was seconded by Councillor Stewart and when put to the meeting was declared carried.
Councillor Close then moved by way of amendment "That the recommendations of the Strategy and Resources Annual Plan working party be adopted, subject to:
1. The rate increase for 1996/97 being reduced to 2.76%.
2. Incorporation of the adjustments to the Property budget listed in the tabled memorandum from the Commercial Property Manager.
3. The reduction of the central city retail marketing budget by $150,000 per annum from 1997/98.
4. Subsequent savings identified being used to reduce the rate increases projected for 1997/98 and subsequent years."
The amendment was seconded by Councillor O'Rourke.
(2.35 p.m. Councillor James arrived)
The Mayor then listed amendments to the draft Annual Plan foreshadowed by individual Councillors, following which the Council proceeded to debate the individual amendments proposed, as follows:
CENTENNIAL POOL
Councillor Sheriff moved:
"1. That Centennial Pool be closed with top priority being given to the redevelopment of the Centennial Pool site.
2. That $1 million be deleted from the enhancement budget for swimming pools.
3. That the operational deficit of $233,000 be deleted."
The motion was seconded by Councillor Howell.
The Mayor moved by way of amendment "That clause 1 of Councillor Sheriff's motion be amended to provide `That the Council finalise designs for the Centennial Pool redevelopment in time for start date of 1 July 1996 for redevelopment of the new pool'". The amendment was seconded by Councillor O'Rourke and when put to the meeting was declared carried.
On being put to the meeting clause 2 of Councillor Sheriff's motion providing for the deletion of $1 million from the enhancement budget for swimming pools was declared lost on division no. 1 by 7 votes to 18, the voting being as follows:
Against (18): Councillors Alpers, Anderton, Close, Condon, Crighton, Dodge, Evans, Fahey, Freeman, Ganda, Harrow, James, Keast, Manning, Moore, O'Rourke, Stewart and the Mayor.
For (7): Berry, Buist, Cox, Howell, Murray, Sheriff and Wright.
On being put to the meeting clause 3 of Councillor Sheriff's motion providing for the deletion of the provision of $233,000 for the operational deficit was declared carried.
SHUTTLE BUS
Councillor Cox moved "That the provision of $100,000 for a shuttle bus in 1996/97 be deleted". The motion was seconded by Councillor Dodge and when put to the meeting was declared carried.
Councillor Harrow moved "That the costs of the shuttle bus be met from the budget for central city marketing". The motion was seconded by Councillor Fahey and when put to the meeting was declared lost.
AURORA CENTRE
Councillor Moore moved "That the provision of $100,000 for the Aurora Centre in 1996/97 be retained, but that the provision of $200,000 in 1997/98 and the further provision of $200,000 in 1998/99 be deleted". The motion was seconded by Councillor Evans and when put to the meeting was declared carried on division no. 2 by 16 votes to 9, the voting being as follows:
For (16): Councillors Anderton, Berry, Close, Condon, Cox, Crighton, Evans, Fahey, Freeman, James, Keast, Manning, Moore, O'Rourke, Sheriff and the Mayor.
Against (9): Councillors Alpers, Buist, Dodge, Ganda, Harrow, Howell, Murray, Stewart and Wright.
Councillor Cox moved "That the provision of $100,000 for the Aurora Centre in 1996/97 also be deleted". The motion was seconded by Councillor O'Rourke and when put to the meeting was declared lost.
CIVIC OFFICES LIFTS
It was resolved that the provision for this item be reduced to $230,000 in 1996/97 (a saving of $270,000) and that additional funding of $130,000 be provided in 1997/98, this amended provision permitting the conversion of one of the existing goods lift to a passenger lift, followed by the upgrading of the existing passenger lift.
COMMUNICATIONS AND PROMOTIONS
It was resolved on the motion of Councillor Evans, seconded by Councillor Berry that the City Manager be requested to report back to the Council on the possible contracting out of some of the activities currently carried out by the Communications and Promotions Unit.
CIVIC OFFICES: REPLACEMENT OF WINDOWS
It was resolved that the current provision for the replacement of windows in the Civic Offices be deferred, with the provision for this item being rescheduled as follows:
2000/01 $50,000
2001/02 $875,000
2002/03 $875,000
MONA VALE
It was resolved that all provision currently made for expenditure on Mona Vale be deferred, pending a comprehensive staff report.
UNSPECIFIED COMMUNITY FACILITIES
It was resolved that the unspecified provision of $162,000 in 1996/97 be transferred to the following projects:
1995/96 1996/97
(i) Linwood Community Creche $200,000 $62,000
(ii) Springs Road Creche $200,000 $50,000
(iii Harewood - Internal Alterations $30,000 $30,000
)
(iv) Redwood Community Centre/Creche Conversion ($60,000
already budgeted
add $20,000)
---------
--
$162,000
======
SHIRLEY COMMUNITY CENTRE: STRUCTURAL STRENGTHENING
It was resolved that the provision of $350,000 for this item be deferred until 2001/2002.
PRO SHOP: RAWHITI GOLF COURSE
It was resolved that the provision of $350,000 for this item be deleted.
(The meeting adjourned for a meal break between 5.00 p.m. and 5.40 p.m. Councillor Anderton did not return to the meeting following the meal break.)
PROPERTY SALES
Councillor Freeman moved "That the sales of properties not required and not realising market returns and rentals (restricted assets, heritage buildings and public housing excluded) be accelerated to help the retirement of debt".
(6.05 p.m. Councillor Fahey retired)
On being put to the meeting the motion was declared carried.
(6.10 p.m. Councillor Dodge retired)
AIR POLLUTION AND QUALITY 1996/97
Councillor Evans moved:
"1. That $50,000 be added to the environmental planning budget for the implementation and promotion of the air quality management strategy for Christchurch City this winter.
2. That this be carried out in consultation with the Regional Council."
The motion was seconded by Councillor Manning and when put to the meeting was declared carried.
ENHANCEMENT PROJECTS
Councillor Evans moved "That the City Council indicate in the 1996/97 Annual Plan that the projects listed as enhancements will in future be included as outputs in the appropriate unit budgets". The motion was seconded by Councillor Wright and when put to the meeting was declared carried.
Councillor Harrow moved "That the enhancement projects be capped at the level at which they are presented in the 1996/97 draft Annual Plan including the adjustments". The motion was seconded by Councillor Murray and when put to the meeting was declared lost.
LIBRARY CHARGES
Councillor Murray moved "That the following revised hire charges be applied for the items shown:
Library books 30 cents
Cassettes $1.25
Compact discs 30 cents per day"
The motion was seconded by Councillor Buist and when put to the meeting was declared lost on the Mayor's casting vote.
CANTERBURY TOURISM COUNCIL
Councillor Murray moved "That the contribution to the Canterbury Tourism Council be reduced by $30,000, with the Community Services Committee to decide where the reduction is to be applied". The motion was seconded by Councillor Buist and when put to the meeting was declared lost.
CENTRAL CITY MARKETING
Councillor Close moved "That the central city marketing budget be reduced by $150,000 per annum from 1997/98". The motion was seconded by Councillor Wright and when put to the meeting was declared carried.
RICCARTON SERVICE CENTRE
Councillor Buist moved:
"1. That, in line with the recommendation made by the Riccarton/Wigram Community Board, the provision in 1996/97 for the Riccarton Sub-Service Centre be retained, to allow the retention of a Council staffed and operated sub-service centre in Riccarton.
2. That investigations continue as to alternative options to be considered at the expiry of the lease of the current premises in October 1996, in order to achieve a more viable operation."
The motion was seconded by Councillor Berry and when put to the meeting was declared carried.
SPEED CAMERAS
Councillor Sheriff moved:
"1. That the provision of $100,000 for speed cameras and $50,000 associated revenue be deleted.
2. That provision of $25,000 be included for road safety issues."
The motion was seconded by Councillor Evans and when put to the meeting was declared lost on the Mayor's casting vote.
CITIZENS' ADVICE BUREAUX
It was resolved that the question of funding for Citizens' Advice Bureaux be referred to the Community Services Committee for review.
MUSEUM LEVY
Councillor Harrow moved "That the City Council's share of the Canterbury Museum's draft budget remain at the same level as in 1995/96, i.e. $1,691,762". The motion was seconded by Councillor Buist.
Councillor Howell moved by way of amendment "That the Council's share of the Museum budget be increased by the rate of inflation, being 2.2%". The amendment was seconded by Councillor Murray.
Following an explanation by Councillor Alpers of the procedure for objections under the legislation governing the operation of the Museum, both the motion and the amendment were withdrawn.
It was then resolved that the provision for the Council's share of the Museum levy in 1996/97 remain unchanged.
FOUNTAINS ROAD SEALING
Following consideration of a tabled report by the City Streets Manager, Councillor O'Rourke moved "That additional funding of $84,000 for the Fountains Road seal extension project be included in the draft 1996/97 Annual Plan". The motion was seconded by Councillor Close.
Councillor Wright moved by way of amendment "That the project proceed and that additional funding be sought at the six monthly review". The amendment was seconded by Councillor Murray and when put to the meeting was declared carried as the substantive motion.
The original motion moved at the commencement of the meeting by the Mayor and seconded by Councillor Moore (incorporating the amendments adopted during the course of the meeting) was then put separately to the meeting as follows:
"1. That the Council adopt the adjustments listed in Appendices I and II and the recommendations contained in the report by the Strategy and Resources Annual Plan Working Party, as amended at the present meeting.
2. That the Council approve a 2.77% overall rate increase and borrowing of $48.25M for 1996/97.
3. That the Uniform Annual General Charge and existing Differential Rating Scheme be retained without alteration for 1996/97.
4. That the draft 1996/97 Annual Plan (pink covered book), incorporating the adjustments listed in Appendices I, II and III be approved as the Draft Annual Report to the public, in terms of section 223D of the Local Government Act 1974.
5. That the City Manager publish the draft Annual Plan and that, pursuant to section 716A(1)(b) of the Local Government Act 1974 he give public notice on Tuesday 21 May 1996 calling for submissions from interested persons in accordance with section 716A; such submissions to close on Monday 24 June 1996.
6. That the members of the Strategy and Resources Committee be appointed to hear public submissions on the draft Annual Plan on Monday 15, Tuesday 16, Wednesday 17, Thursday 18 and Friday 19 July 1996 and to report thereon to the Council at its meeting on Wednesday 31 July 1996.
7. That pursuant to section 716A(1)(a) of the Local Government Act 1974 notice be given that the Council's Annual Plan will be considered by the Council at its meeting to be held on Wednesday 31 July 1996.
8. That in terms of section 223D of the Local Government Act the Annual Plan be available to the public free of charge. Copies to be available at the Civic Offices, Service Centres, the Central Library and community libraries.
9. That the draft 1996/97 Corporate Plan as amended which provides the detail of Business Unit plans be approved by the Council and be made available for public inspection at the Civic Offices and Service Centres."
On being put to the meeting clause 2 of the motion was declared carried on division no. 3 by 13 votes to 9, the voting being as follows:
For (13): Councillors Alpers, Close, Condon, Crighton, Evans, Ganda, James, Keast, Manning, Moore, O'Rourke, Sheriff and the Mayor.
Against (9): Councillors Berry, Buist, Cox, Freeman, Harrow, Howell, Murray, Stewart and Wright.
Clauses 1, 3, 4, 5, 6, 7, 8 and 9 of the motion were then put to the meeting and declared carried.
2. COUNCILLOR GANDA: LEAVE OF ABSENCE
Councillor Ganda sought and was granted leave of absence from the Council for the period 9-30 May 1996 inclusive.
3. REPORT OF THE PARKS AND RECREATION COMMITTEE
OF 23 APRIL 1996
This report was not considered by the Council.
4. RESOLUTION TO EXCLUDE THE PUBLIC
Councillor Harrow moved:
"That the public be excluded from the following parts of the proceedings of this meeting.
The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
item general subject of each reason for passing ground(s) under
no. matter to be considered this resolution in section 48(1) for
relation to each the passing of
matter this resolution
1. Art Museum Land Purchase Good Reason to Section 48(1)(a)
Withhold Exists
Under Section 7
This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public are as follows:
Item No.
1 Conduct of Negotiations (Section 7(2)(i))"
The motion was seconded by Councillor Murray and when put to the meeting was declared carried.
CONFIRMED THIS 22ND DAY OF MAY 1996
MAYOR