TO: WANGANUI DISTRICT COUNCIL

Submission 2015-25 10 Year Plan

Grey Power submits as follows:

PENSIONER HOUSING Two years ago we said we supported the sale of some hard-to-rent complexes providing the sale proceeds were applied to upgrading other units. That remains our position but we would support the sale of other complexes to social housing providers to ensure that affordable pensioner housing continues to be available to older people with limited income.

We have examined the figures produced to demonstrate the need for ratepayer input in the years ahead. What they clearly show is that for the years 2010 to 2015 the operation has had NIL input from ratepayers. What they do not show is a breakdown of operating expenditure or the charge for overheads (to the order of approx $230,000 a year). In our view the estimates are at least challengeable and possibly excessive and should be queried.

In the event that Council does decide to follow its preferred option it should advertise for expressions of interest along the lines of an advertisement placed by Hamilton City Council in the Dominion Post some weeks ago

SALE OF JOINT VENTURE FORESTRY  We support the sale at market value of all the blocks. Apparent difficulties in ownership of the Nukumaru and Waitahinga blocks can be overcome

ECONOMIC DEVELOPMENT AND WANGANUI & PARTNERS The rates requirement under these two headings for year 2014/15 is $2.753m. For year 2015/16 the rates requirement is $3.307m – an increase of $554,000. Total FTE’s are 14.9. Forecast average earnings are $69,339 for ED staff and $85,116 for WP staff. Councillors would do well to read thoroughly the left hand column on page 44 of the consultation document to reconcile the statements made therein with the above figures. Personnel costs are conveniently ignored in the comment about WP funding but are shown on page 29

Few people, including the 1830 members we represent, will quibble with the

setting up of Wanganui and Partners to play a key role in promoting and guiding the district’s economic development. We are disappointed however that the need to increase the rating base is not mentioned. The establishment of a raft of small businesses, many of which are bound to operate from proprietors’ homes and/or existing vacant premises will achieve nothing in that regard

WASTEWATER TREATMENT PLANT We support the intention to delay the rebuild until all factors are resolved satisfactorily. Council is in a most unenviable position.

SARJEANT GALLERY Whether or not the redevelopment ultimately proceeds the earthquake strengthening work is a must. But how is it that the FTE’s now number 14.1 who are paid an average salary of $63,500?

PROPOSED RATES INCEASES Year 15/16 4.1% Year 16/17 3.4%

Having obtained a copy of the Berl produced document Forecast of Price Level Change Adjusters (October 2014 amended) on which the LGCI (Local Government Cost Index) is based, the writer of this submission is better placed to comment on the figures therein. In the six months since the document was updated three important factors influencing the forecasts have occurred and are on-going. The price of petrol is lower, dairy produce prices have fallen markedly, and the exchange rate remains stubbornly high. The lower petrol price flows through to transport and roading costs which are a significant item in council’s budgeting. Inflation is currently virtually NIL

Included in year 14/15 rates are charges for earthquake strengthening and debt retirement which form part of the total rates revenue for the year. Continuation of the charges is not disputed but why are they advanced as part reason for the year 15/16 increase?

These observations lead to our appraisal that there is no justification for any increase beyond the LGCI of 2.3%.

PROPOSAL TO ALLOCATE $150,000 FOR CULTURAL ADVICE         Grey Power is emphatically opposed to any such provision. It is said that a sum about equal to a Councillor’s basic honorarium is already funded for that purpose and has been for some time

For and on behalf of the Executive Committee of Grey Power Wanganui Inc.

Graham Adams

President..