New responsibilities adding to Council role

Rising big-ticket costs like energy and construction and increasing responsibility for new community services are adding to the city’s council’s spending.

“Like anyone else, we’d like to keep our budgets within the rate of inflation,” says Roy Baker, the Council’s General Manager of Corporate Services. “But on top of our traditional activities, there’s no question that the scope and responsibility of local government is being expanded every year.

“Changes like those to do with prostitution law reform is one example, as are proposals like putting microchips in pets so that they can be more closely monitored. Those added responsibilities come at a cost.”

The new Local Government Act says councils must now promote the social, economic, environmental and cultural well being of their communities.

The Council’s electricity costs have recently risen by about a third.

“In the current market, that 33% rise was a pretty good deal, but it’s likely to go up again next year,” Mr Baker says.

The city is fortunate to have its portfolio of investments. Dividends from its stake in Orion, City Care, Redbus and the port, airport and forestry companies will be worth about $30m this year.

“If we didn’t have that dividend income, the rates would have to rise by more than 18%,” Mr Baker says. “They’re saving the ratepayer in the average home more than $180 a year.”

Changes in final plan

The Community Plan finalised late last month by the Christchurch City Council includes several changes to the draft plan it released earlier in the year. Those changes include:

• Capital Endowment Fund: The draft plan included a change in the mix of payout from this fund, with a greater portion being used for community and civic projects around the city. The City Council has decided, however, to stay with the original 70:30 split, with the majority being used to support economic development projects and the remainder used for community and civic projects.

The fund was set up in 2001 with the profit made from the sale of Orion’s North Island gas business. In the coming year, it is expected the fund will be worth about $79m and will make a total payout of a little over $2.5m.

• Organic waste: Plans to build an enclosed plant to process commercial kitchen and organic waste over the next few years have not changed. However, the Council decided it will also spend $125,000 this year on an investigation of home composting and the potential for kerbside collection of home organics.

• Off-street parking: To fund a central city promotional effort, the draft plan included increases in off-street parking fees, including changing the hourly rate from $1.40 an hour to $1.80. The Council decided that the rate should instead be $2 an hour, in line with on-street fees. The first-hour-free service at four central city parking buildings will continue.

• Rural rating: About 300 rural-rated properties which had been earmarked for a change to residential under the Council’s rating policy will not now be changed for at least a year where the properties have not changed their use, the Council decided. The Council will develop a guide to use in deciding what a property’s rating should be. Council staff will also look at the relationships between land use and rating types, it decided.

• Water sports: Support for a new flat-water sports facility in or near the city was confirmed by the Council. There is up to $11m signalled in future budgets to help build such a facility if a suitable location and about another $20m in funding can be found from other sources. In this year’s budget is $200,000 to investigate potential locations.

A plan to build a lake on land belonging to Diana Lady Isaac north-west of the airport should not proceed, the council decided, because experts said it could make airport operations less safe.

Councillors voted to thank Lady Isaac for her generous offer and the Lake Isaac Trust for its work in advancing the idea.