Coronavirus: call for halt on Rotorua 'vanity projects', rates freeze to cushion economic blow - councillor

Councillor Reynold Macpherson. Photo / Stephen Parker

Rotorua Lakes Council needs to abandon "vanity, legacy and payback projects", freeze or reduce rates and cut spending and borrowing in order to combat coronavirus, a Rotorua Lakes councillor says.

However, another councillor has accused Reynold Macpherson of "loose lips" and "grandstanding".

Macpherson, a councillor and member of Rotorua Residents and Ratepayers group, said coronavirus would worsen rates affordability in Rotorua unless the council's financial policy changes.

"The main conversation in council is how to reallocate even higher rates across groups of properties with different capital values, so that the impact is 'more equitable'.

"With coronavirus the conversation should be about how to hold or reduce rates and how to cut spending and borrowing."

The council had been considering its priorities as part of the annual plan process and while much of that discussion was publicly excluded, Macpherson said the council needed to "learn to be far more pragmatic".

He had surveyed 347 Rotorua Residents and Ratepayers members for their views on what the council's priorities should be and 83 responded.

According to Macpherson, the outcome of that was that expenditure in "mass entertainment and subsidies, council inefficiencies, public art, lakefront redevelopment, Forest Hub 2, cycleways, skateboard park and bilingual signage" should be cut in order to enable freezing or reduction of rates.

Members also responded that sewerage reticulation schemes should be delayed.

Areas that should not be cut included core infrastructure as well as parks and reserves, "toilet cleaning and weed spraying", library and community projects, "pensioner flats and homeless housing", he said.

The council's Vision 2030 "did not imagine coronavirus".

Conceptual impression of the Rotorua Lakefront development. Photo / File

"So let's abandon vanity, legacy and payback projects, set aside unfunded mandates - like the four 'well-beings', refocus on providing basic services, and freeze or cut rates closer to the CPI."

That would help ratepayers "survive the coming recession".

The mayor and all other councillors were contacted for comment on what they believed should be the approach to rates in light of coronavirus, and to respond directly to Macpherson's claims.

Mayor Steve Chadwick said the "right time and place" to discuss how the council could support the local economy through "this period of uncertainty" would be at Thursday's council meeting.

Rotorua Mayor Steve Chadwick. Photo / File

"That's the appropriate forum, rather than having a debate in the media."

Deputy mayor Dave Donaldson echoed that view, saying the council chamber was "where councillor Macpherson can have his debate".

Councillor Trevor Maxwell said the full council and senior staff had not yet had a "meaningful opportunity" to debate and discuss "this huge issue - coronavirus".

He said leadership had come from the central government on the issue and that was where the initial focus would be.

Many council events and meetings were cancelled, including the Sister Cities conference in Ashburton, he added.

Councillor Raj Kumar said before coronavirus it was acceptable to continue "campaigning and planning for growth towards the future".

"However, stark reality has hit home."

Putting things on hold was to be "responsible and respectful" to the challenges ahead.

"If we don't, then there's dire consequences and I feel for the people … I won't want any increase at the moment until it goes back to normal."

Councillor Peter Bentley said the council stopping the night and farmer's markets were a "positive first step to saving ratepayer money".

Councillor Merepeka Raukawa-Tait. Photo / File

He agreed some projects, such as the lakefront boardwalk, should be "canned" but "essential infrastructure investment" - sewage, roading, water supplies and rubbish - should be retained.

"We must aim to keep rates to CPI or less, prepare for rates relief for those people who suffer redundancy due to this virus emergency."

Councillor Merepeka Raukawa-Tait said rates and coronavirus was a "significant issue" for the council to contemplate.

"It requires wise heads and full and frank discussion."

She looked forward to input from the full council as it worked to ensure the community remained safe and well "and that we show fearless leadership at this time".

"That does not include grandstanding and loose lips."

Councillors Sandra Kai-Fong, Fisher Wang, Tania Tapsell and Mercia Yates did not respond.