Cost of a Supercity to ratepayers by Tony Stallinger, CEO, Hutt City Council We now know the Local Government Commission will begin a formal review of Wellington Regional governance arrangements soon. We now know the Local Government Commission will begin a formal review of Wellington Regional governance arrangements soon. The Wairarapa councils started the process by lodging an application for a review. This is likely to be followed by a supercity proposal from Wellington City Council and a competing supercity proposal from the Wellington Regional Council. At Hutt City Council, we continue to work closely with our neighbouring councils, seek community feedback on options and promote the best interests of the Hutt. To date the feedback highlights significant concern about the prospect of a supercity being imposed on Wellington. Often that concern is centred on the loss of local democracy and it being difficult for the public to access decision makers directly. People are also rightly concerned about the financial impact on them. We see two key issues for Hutt residents over the coming years: • Regionwide rate increases are forecast to be 15 per cent higher than in the Hutt • Regionwide net debt is forecast to soar over $1,000 million, despite Hutt debt reducing to about $50 million. It would be unfair for Hutt City ratepayers to foot the bill for the spending plans in other areas of the city. This could happen if a supercity is implemented in Wellington. I checked out the equivalent supercity in Auckland by looking at their council’s last annual report. The reported results show this model of governance doesn’t guarantee success: • The council recorded a loss for the year of $198 million, which was $410 million worse than their budget. • The council’s debt increased by $878 million during the year, which was $810 million worse than their budget. Their total debt is now $3,860 million and forecast to climb exponentially. In contrast, both Hutt City and Upper Hutt City councils have a proud record of financial constraint, low rate increases and delivering to budget.
Posted on: Sun, 16 Jun 2013 00:27:12 +0000
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