Use reserves council told
Two thirds of submitters to the Timaru District Council’s annual plan are in favour of using $3 million of reserves to lower rates, a report to be tabled at next Tuesday’s council meeting says.
The draft Annual Plan 2020/21 is based on the third year of the Long Term Plan 2018-28, which included close to $38m of capital projects and a forecast rates increase of 7.09 per cent.
A total of 79 submissions were received as part of the consultation process which closed on June 12.
In light of the impact of Covid-19, the council invited feedback on two key issues: the use of $3m of reserves and savings to lower the total rates increase to 2 per cent, and the use and principles of the proposed $2m stimulus fund.
The majority of the 47 submitters who responded to the question of using reserves to reduce rates were in favour of it, given the economic climate created by the pandemic.
According to the submission summary report, the use of reserves will mean not all operational expenditure for 2020/21 will be covered.
‘‘The effect of this is that, at a later date, the rates increase will be greater than they would otherwise have been,’’ it says.
‘‘The reason for this is that as council moves back to a ‘pay as you go’ model it needs to bridge the gap created by using reserves in the interim.’’
However, it also notes that the council has ‘‘built up a strong financial position over many years’’ and ‘‘$3m of reserves is only a very small part of council’s total reserves’’.
Those who opposed the use of reserves ‘‘supported maintaining the existing work programme, continuing
‘‘We have been through tough times.’’
Submitter
to invest in the district, and maintaining reserves for other purposes’’.
Some felt that the ‘‘rainy day has not yet come’’ as the region is yet to see the long term impact of coronavirus.
On the topic of the stimulus fund, 38 people submitted and were ‘‘largely supportive’’ and suggested uses for the fund such as the Theatre Royal, art gallery, museum, community events, theatre, local markets, supporting the foodbank and community gardens.
‘‘I think that social, cultural and environmental outcomes should be given equal consideration with economic,’’ one submitter wrote.
‘‘We have been through tough times, and our morale is an important factor in our recovery.’’
Some organisations prepared applications to the proposed fund, including CPlay which is seeking $86,000 to develop a heritage playground; Central South Island Cycle Trails Inc looking for $150,000 to support the construction of a proposed Timaru to Cave cycle trail; Fraser Park Community Trust submitted asking for $1m to redevelop the park; Sustainable South Canterbury Trust is seeking $150,000 to support phase two of the construction of the Eco-Centre; and the Pleasant Point Community and Volunteer Fire Brigade submitted an application for $45,000.
Some submitters felt that it was not the council’s responsibility to set up the fund and that the Government had already provided various recovery packages.
The council invited broader feedback on the annual plan.
Common topics included earthquake strengthening of the Historic House Gallery at the Aigantighe (11 submitters), the Theatre Royal project (eight), water supply (five), social housing (four) and biodiversity (four).
Other issues raised included the cemetery, climate change, coastal erosion and landfill, cycleways, roading, road safety and transport strategies, council expenditure and staffing, and recreation.