Cash crisis puts Southgate in the gun
Political optics over finances haven’t been great lately for mayor Paula Southgate, with several fiscally conservative councillors raising concerns over her leadership.
But she and others are adamant she’s doing a great job.
Southgate was on the losing side during two votes on the city council’s crucial 2024-34 long term plan.
Her proposed 18.6% rate rise for next year was overwhelmingly defeated in November.
Instead, a motion for a 25.5% increase next year from economic development committee chairperson Ewan Wilson was supported to help balance the books quicker to curb debt.
However, it was subsequently changed to 19.9% last month - with the agreement of both Southgate, Wilson and all other councillors - following a budget re-think on confirmation that the costs for three waters needed to come back on to the council’s books longer term. It would be followed by four years of 15.5% rises if adopted.
Southgate also voted against another successful motion last month - again from Wilson and carried 8-6 - for more staff and consultant cuts to reduce costs. That move wouldn’t have a huge percentage reduction impact on rates in later years but would potentially carve out $100 million-plus savings over 10 years and send a strong political signal.
Whether these losses cast doubt on Southgate’s financial leadership skills depends on who you ask: Those who are clear she’s got the goods or some of the well-known fiscal conservatives on council.
Wilson said the reason people voted for his ideas varied in both cases.
“And I think that may reflect the mayor not reading the room right.
“She’s got a lot of strengths. Finance isn’t one and reading the room isn’t necessarily [another].”
He hoped the 8-6 vote in favour of his cuts motion was a sign of greater fiscal conservatism emerging on council.
“I believe there is an awakening [to] the fact that what we’ve been doing is just not sustainable.”
On whether public impressions of Southgate’s financial leadership had been weakened by the two votes, Wilson took a long pause.
“I like Paula. I don’t believe she’s strong in finance. I felt there was a better way to approach this entire LTP.”
It was, however, up to the public to decide whether her standing had been hurt.
But, he added: “If I lost two significant financial decisions in a row I would be thinking I need to start to really get a better grasp of the issues or start reading the room better.”
Did the two votes supporting him augur well for a more blatantly fiscally conservative mayoral candidate, such as councillors Tim Macindoe and Geoff Taylor, who are both considering a run next year?
“I would hope so ... the city needs a fiscally responsible, with a community heart, approach and we can achieve both,” said Wilson.
Taylor, who ran a hard-fought mayoral race against Southgate in 2022, said he didn’t want to be “nasty” but felt Southgate being on the wrong side of two votes indicated she was losing the initiative somewhat. “Particularly by voting against cuts which most of us think are desperately needed” and “a group of councillors have taken leadership over the finances because we’ve had to”.
Macindoe was more reserved, saying he didn’t want to say Southgate wasn’t providing strong leadership on finances.
But the lost votes “definitely demonstrates that we must have very strong fiscal leadership from the top”.
“I would like to see her focus become much more on the need to provide that fiscally conservative leadership,” he said.
If he did run for mayor that sort of leadership “would be my primary focus”.
But Southgate’s view she’s been leading well on finances is endorsed by finance committee chairperson Maxine van Oosten. “I think she’s on to it” with good financial nous, she said.
Also, “you’ve got to be a true leader to allow other councillors, who have different views, to really be able to explore their options as well”.
Deputy mayor Angela O’Leary - who voted with Southgate on opposing Wilson’s 25.5% and his suggested cuts - said she and the mayor had great political experience, unlike some others around the council table, and she backed the mayor as a strong financial leader.
“Councillor Wilson’s intent of running the city into the ground ... he’s also an expert at disruption. So this is politics 101.”
Southgate said her 18.6% proposal last year acknowledged the need to boost rate rises but it also aimed to put a cap on what was proposed for next year to ease the pain.
Of the suggested job and consultant cost cuts voted on this year, she had been concerned there was a lack of clarity over the impact on services. “It could mean anything ... I would prefer to understand more about that before we put it out to the public.”
Southgate said she took advice from staff and external sources on financial matters and that a good mayor brings all that to the table for consideration.
“I don’t have to be a financial guru myself but I need to be able to understand the finances.”
She’s still pondering whether she’ll run again for mayor after two terms.
On whether the push for more fiscal conservatism locally and nationally might affect her chances if she does run, Southgate said she’s stressed the need not to add new spending to the long term plan and to look for savings. But she doesn’t want a “run the city down” approach.
“I will say in terms of any criticism that comes my way about spending is that I have absolutely said from day one: councillors you cannot keep adding things in unless you’re prepared to take something out. And be really clear what you want to take out.”