Axe looms over city services

Mayor Stuart Crosby

Trimming services such as lawn mowing, park and reserve upkeep, and roading is one of the options being considered as the city council seeks to tackle debt levels and avoid a hefty rates increase.

Mayor Stuart Crosby said reducing service levels and increasing developer contributions and user fees were among the "hard topics" councillors would have to look at ahead of the first council meeting of the year to be held on Thursday.

Councillors were expected to discuss which projects to include in the draft annual plan, from the Greerton Library upgrade to stormwater funding. The meeting precedes budget discussions, which begin next month.

"The new council will look at a range of scenarios that could reduce debt over the long term," he said. "Personally, I am against cutting levels of service, which is basically how flash we are, whether we cut the grass when it is 100mm or half a metre, for example, Mr Crosby said.

"People here appreciate the beauty of this city and I do not believe you can cut levels of service too much. That can be a false economy."

The council's debt is about $380 million. Councillors told the Bay of Plenty Times they were aiming for a "steady as she goes" 2014/15 budget.

New councillors, many of whom were voted in on the promise of debt reduction, said they were keen to see the city in a better financial position before the end of the term and they were happy to tighten council spending to help reach their goal.

Councillor Steve Morris said the previous council had focused on debt and rates but should also have looked at levels of service.

"People showed their disappointment and desire for change at the election and they can expect to see big changes.

"There are three levers we can pull to help solve the money problem but to date only two have been pulled, increasing rates or adding to the debt - borrowing or taking.

"The third lever has not been pulled, cutting spending to suit, but we will be looking at that third lever, we will look at council spending. This council wants to send a clear message that we are serious and that we heard voters."

Cr John Robson told the Bay of Plenty Times he hoped to see spending kept to the same levels as last year and did not see the need for a rates hike.

"Tauranga rates have already gone up three times the rate of inflation in the past decade," he said.

"Inflation has gone up around 24 per cent over the past decade but Tauranga rates have gone up 80 per cent in the same time period. "That is unsustainable and increasing our debt is also unsustainable, so in my mind we need to tie-ho, slow down for the short term. "This will be extremely difficult politically in the short term and the elected members will have to show some strength to deliver a sustainable budget."

Deputy Mayor Kelvin Clout said ratepayers should brace for a 10 per cent rates rise but then be pleasantly surprised.

"A very low rates policy will see the following jeopardised: flooding mitigation, economic development, roading improvement, Greerton Library, community development, cultural and sporting investment," he said.

"If we were going to do everything we wanted to do, ratepayers would be looking at a rates rise of at least 10 per cent, but politically that is not what is desired, which means we have to make some choices.

"A lot of the new councillors would like to go in straight away and chop from the knees, but I believe this city is just starting to feel more positive and enthusiastic about its prosperity and I would hate to just start making cuts when there is growth out there."