Ratepayer breakaway ‘unlikely’

A local government analyst who has been monitoring councils for 20 years says the chances of a boundary change for Kaiko¯ura are slim, despite the challenges it faces as a small rural council.

Clarence ratepayers have been campaigning for years to be rezoned as part of Marlborough, and have renewed their efforts after a recent report said the council could not survive in its present form.

Larry Mitchell, who for many years published league tables ranking councils on their debt levels and other performance indicators, said Kaiko¯ ura’s most recent data showed it scored low in many areas – and high in just a few.

The financial legacy of the earthquake complicated the picture, Mitchell said, but the council was up against it.

‘‘There are certain factors that will always have a negative effect on the delivery of services in Kaiko¯ ura, including a low population density: 1.7 people per square kilometre compared to the NZ average of 15.9,’’ Mitchell said.

‘‘Kaiko¯ ura has a net worth of $161m – that’s about half the financial size of other rural councils. The median income is $26,400 – that’s $2000 less than the average – and the population has decreased while New Zealand’s is growing.’’

On the plus side, Kaiko¯ ura had a high number of rating units (3238) in relation to its population of 3,900. And the cost of its debt financing was very low, at just $159 per ratepayer.

Small rural councils like Kaiko¯ ura had tended to stick to their knitting in the past, but the Government’s reinstatement of the ‘‘four wellbeings’’ could tempt them to extend their basic services, and try to offer more ‘‘frills’’, Mitchell said.

That was something for ratepayers to keep a close eye on.

‘‘Its staff levels (41 FTE) are very low compared to most councils, but I note that 10 of those staff earn more than $100,000 a year.

‘‘That seems high, but unfortunately these days it’s not unusual, even for a small council,’’ he said.

Average rates in Kaiko¯ura ($2138) were higher than in Buller ($1897) and in neighbouring Hurunui ($1947), which were councils of a similar size.

But they were lower than Kaiko¯ ura’s northern neighbour, Marlborough ($2401), he said.

The council’s recent public opinion survey was a terrific initiative, he believed, though the feedback showed the overall satisfaction rate with the council was just 48 per cent – below the NZ average rating of 54 per cent.

Some services scored highly, including the library, public toilets and what Mitchell described as an ‘‘outstanding sewers score’’ of 75 per cent approval.

Ratepayers who want out point to the recent report by the Kaiko¯ura Recovery Steering Group which found the council would need a cash injection of $7m to $10m over the next five years, just to set up a ‘‘sustainable’’ operating system.

Even so, the chances of any ratepayer group busting out of Kaiko¯ ura seem doomed, Mitchell said, given the recent Local Government Commission decision not to let Northern Rodney leave the Auckland council.

‘‘And that, in my opinion, was a substantial, viable and very strong case,’’ he said.

The East Coast Community Organisation, representing the Kaiko¯ ura breakaway group, has said it is taking advice from the commission on how to initiate a boundary change.

But new mayor Craig Mackle said this month the Government had told the council it had no appetite for reorganising the Kaiko¯ ura council.