'Forensics' on $3b Super City debt

The agency designing Auckland's Super City is running "forensics" on councils' combined debt of $3 billion and draft 10-year plans.

Auckland Transition Agency chairman Mark Ford says the agency is focusing on new debt, not rolling debt.

A Herald survey this year found that Auckland's eight councils and the region's bulk water and wastewater company, Watercare Services, are planning to borrow at least $634 million in the 2009-2010 financial year.

The new Auckland Council will inherit a combined debt of more than $3 billion.

The Auckland City Council plans to borrow about $270 million in the coming year to help to deliver a $532 million capital works programme and keep the overall rates increase down to 2 per cent.

Mr Ford said the agency would "probably have a view" on anycouncil using debt to hold down rates.

The agency has seconded Rodney District Council chief executive Rodger Kerr-Newell as its chief executive and appointed former Treasury official Chris McKenzie.

Mr Ford, who officially steps down as chief executive of Watercare on June 30 to design the Super City structure, has also seconded Watercare's communication manager, Clive Nelson, into the same role. Other appointments are pending.

Mr Ford said Mr Kerr-Newell and Mr McKenzie were running forensics on councils' draft Long Term Council Community Plans that set out their priorities for the next 10 years.

Councils are finalising the plans, which come into effect next month. Under a law passed last month, the agency is required to approve any council contract worth more than $20,000 that runs past June 2011.

Mr Ford said nothing had cropped up yet in the plans of concern to the agency and he was pretty sure most, if not all, of the plans would be approved at a board meeting this month.

However, he said the agency was reserving the right to come back and query any issue at a later stage.

Mr Ford said it was crucial for councils to carry on governing Auckland over the next 18 months while the Super City is being set up.