‘Unrealistic’ grand plan irks two councillors

Repeated failures to complete capital projects that Palmerston North residents have been rated for has prompted two city councillors to oppose the draft budget going out for public comment in March.

Newly-elected councillor Karen Naylor and long-serving highpolling councillor Lew Findlay voted against the adoption of the draft budget at Monday’s committee of council meeting.

Findlay said ratepayers had had enough of paying for stuff they were not getting.

‘‘Every year we have millions of dollars of carry forwards, funded by ratepayers. We need to ask whether we can do all this work.’’

Findlay said it was not fair to keep expecting people on low incomes to ‘‘fork out deeper’’ for projects that were unlikely to happen.

And Naylor said she could not support going out for consultation and setting the rates based on a capital programme that was unrealistic.

‘‘We have a trend, that we consistently have not delivered.

‘‘For us to genuinely consult, we need to review what we are planning first.

‘‘We probably all believe these programmes are important, but is it realistic?’’

City Networks general manager Ray Swadel said he believed it was.

Half way through this financial year, the council had only spent $6m of its $31m budget for new capital projects, and $7m of its $21m budget for capital renewals.

Some of the projects running behind schedule included the Wildbase Recovery aviaries at Victoria Esplanade, the Church St/ Ruahine St roundabout, and completion of the Manawatu Riverside shared pathway.

The savings from not having to pay interest on loans that had not been raised had been used to repay $2.7m more debt than earlier planned.

Finance strategy manager Steve Paterson said managers expected at least $3.2m of this year’s capital budget would have to be carried forward into next year.

A total of $36m was being planned for spending on new capital projects in 2017/18.

Mayor Grant Smith said with 68 per cent of renewals spending and 81 per cent of capital spending still to occur in the current year, he was a little concerned.

‘‘We have got a lot to do as a city, and we need to get through this work.’’

Chief executive Paddy Clifford said he shared the councillors’ concerns about limiting the effect of council budgets on ratepayers on fixed and low incomes.

But if work was not carried out, surpluses were used to retire debt, which was to ratepayers’ benefit.

He said waiting for money from third parties, getting agreements from landowners, and requirements to consult or gain consents were among the reasons some projects were running behind time.

Cr Jim Jefferies said he did not see a problem with budgeting for capital works that might not get finished by the end of the financial year.

‘‘There is an up side to not spending capital. It keeps our debt down... and the impact on the rates is pretty much the same.‘‘