Rodney unhappy at planned sharp increase in levy for service groups

An $11.6 million ratepayers' gift to rescue safety, arts and cultural groups is proposed by the Regional Amenities Funding Board in its first draft funding plan.

Legislation set a levy of $9 million for 2009-10 from the region's seven councils to help put the organisations on a firm financial footing.

The aid programme's second year budget was capped at $12 million but left to the new board to work out the actual sum needed.

The 29 per cent hike in the levy it proposes in its first draft plan, which is open to public submissions until February 18, sparked a strong reaction from Rodney District Council yesterday.

"This is dead money for many of our ratepayers up here," said Mayor Penny Webster. "They don't see themselves benefiting - going to the orchestra or the opera."

Before the funding act came in, Rodney ratepayers contributed $54,000 a year to four rescue service groups through their district council grants. In the board's draft plan, they are asked for a total levy of $556,883. This is 34 per cent more than the present year's $414,074.

The levy due from each council is calculated on their rates revenue.

Rodney's contribution is just 4.8 per cent of the board's needs and at the other end of the scale, Auckland City will provide 45 per cent.

But Mrs Webster said the levy on her council meant it could not tarseal any roads.

"The board can put it up and we have no control over it."

Board chairman Vern Walsh agreed the increase was not in line with inflation.

The legislation provided for a maximum total levy in successive years of $9 million, $12 million, $15 million and in 2012-13, an amount equal to 2 per cent of the total rates take of all the councils.

Going by current data, this maximum was expected to be about $19 million.

Mr Walsh said Parliament thought increasing the levy in modest annual steps would be enough to sustain important amenities without unfairly hitting ratepayers.

The 10 amenities groups had stated their budget needs to the board for consideration.

The board had assessed their total needs at $11.6 million and the draft plan was approved by an electoral college of the councils' representatives to go out for public consultation.

Mr Walsh said the board insisted that groups made their services more accessible to a wider community than Auckland City residents.

"Lots of positives have come out of it ... they ensure there is regional reach."

The board was seeking just over 1 per cent of the region's rates and this worked out at $8 a year per resident.

"There is no guarantee that it will go up to the 2 per cent cap on the rates take," he said.

"The board's process of independent assessment and accountability will carry on.

"That's a comfort to the councils that that's a maximum it could get to."

SHARING THE LOAD
* Councils in 2010-11 will pay: Auckland City $5.26 million, Manukau $2.28 million, North Shore $1.73 million, Franklin $169,625; Papakura $329,000, Waitakere $1.26 million, Rodney $556,883.
* Total levies: $11.6 million.
* Grants will go to: Auckland Observatory $800,000 (this year $500,000), Auckland Philharmonia Orchestra $2.12 million ($1.5 million); Auckland Regional Rescue Helicopter $1.2 million ($1.5 million), Auckland Theatre Co $1,070,000 ($800,000), Coastguard Northern $610,000 ($500,000), NZ Maritime Museum $1.4 million ($1 million), NZ Opera $650,000 ($500,000), Surf Life Saving Northern $900,000 ($700,000), Auckland Festival $1.87 million ($1.2 million), WaterSafe Auckland $660,000 ($500,000).
* Total: $11,285,000 ($8.7 million). Administration cost $315,000 ($300,000).