Stadium bill won’t stop funding for existing key projects, TRC says

Taranaki Regional Council will continue to fund key projects already planned over the next 10 years in spite of the multi-million dollar bill to fix Yarrow Stadium.

The council has recommended spending $55m to earthquake proof the east and west stands at the ground, and upgrade facilities, such as extra seating and lighting.

The recommendation is one of eight options, ranging from $6m to $271m, to restore the stadium included in the 2019-2020 draft annual plan which has gone out for public submissions.

The draft plan details council initial expenditure for major works projects already planned in the 2018-2028 Long Term Plan, including predator-free programmes, improving Puketiti Gardens, and building walking and cycling trails across the Kaitake Ranges.

The 2019-2020 draft annual plan estimated total revenue of $47.75m, up from $32.2m in

2018-2019, with income from targeted rates increasing from $2.2m to $6.2m, or 180 per cent.

The 2018-2028 Long Term plan had estimated total revenue in

2018-2019 at $33.4m.

The council would spend $2.8m on the predator-free programme, $1.58m on improvement at Pukeiti Gardens, and $500,000 on the Kaitake trail in 2018-2019.

It would also receive $8m from the sale of leasehold land at Waitara.

TRC corporate services director Mike Nield said the cost of repairs to Yarrow Stadium would be repaid by targeted rates, not general rates, and would not affect funding for the planned projects.

If the option to spend $55m to repair Yarrow Stadium was agreed, the council would transfer $4.25m of targeted rates to the Taranaki Stadium Trust, which would repay the interest and principal back to the regional council, he said.

Nield said council had last year highlighted that proposed key work programmes would cause a budget deficit in the first years of the 2018-2028 Long Term Plan (LTP).

To offset the increased spending the TRC had decided to use reserve funds from the Dividend Equalisation Fund (DER), instead of general rates, to smooth out any shortfalls in the early years of the LTP, he said.

The budget would be unbalanced for those early stages of the LTP but the net position would remain unchanged, he said.

‘‘We will continue to deliver what we have planned to carry out for programmes established in the Long Term Plan.’’