Annual Plan
29/01/2006 12:00:00 a.m.
WELLINGTON City Council needs to start prioritising its spending, says councillor Ian McKinnon.
The council met on June 28 to ratify the annual plan which includes; a rate rise of 6.99%, increases in fees for many council services, increased borrowing and interest-free loans of $7 million for the Marine Education Trust and the $8 million for the Karori Wildlife Sanctuary.
"The city has to realise it can’t do everything," says McKinnon. "We can’t let infrastructure slip but things like the zoo, the marine centre and the sanctuary are all very appealing to various groups. The concern is the aggregate amount.
"User pays are another concern and we have to weigh the private good versus the public good."
McKinnon describes this year’s annual plan as "very generous" but warns it can’t be sustained.
"If the council can’t make hard decisions this year, they will have to make them next year."
WCC chief financial officer Andrew McKenzie says the council is justified in borrowing to buy assets.
"If assets have a 30-year life, why should today’s rate payers fund the lot?" says McKenzie. "It’s like a household budget. If you buy a house you borrow, you spread the payments over a 30-year mortgage but if you’re borrowing to pay for the groceries, you’re in trouble."
The household analogy only goes so far, however. There’s no point going to your boss and saying you want a raise so you can buy a new boat or a car. The council has much more control over its revenue stream – our rates.
"We can afford it because we can tax people more," says McKenzie.
