Mayor replies

Ruapehu Bulletin, 17 August 1990, Page 6

Mayor replies

Ruapehu Mayor Garrick Workman replies to rates concerns. (See letters, page 4): The reforms that have occured within local government must be seen as a long term investment rather than providing a quick solution in terms of rating relief and the provision of a more effective and efficent service. It may well be true to ccontend that in the past smaller local authorities like the Waimarino county were operating cost effectively and efficently. However in this day and age of economic downturn and the likelihood of no real improvement in the economy in the forseeable future the government certainly believes even if no one else does that the survival of local government is dependant on the creation of larger and therefore more viable units of local government. In reply to Mr Alabaster, yes a uniform annual general charge will be levied on all ratable assements, the amount of which is yet to be determined although $250 has been sugested, in order that the general rate is kept at a lower level than would be the case if the charge were not applied. The problem council faces in respect to the area known as the former Waimarino county is that it was rated at a lower level (that is 90 cents in the dollar as opposed to the county area being rated at 1.4 cents and Rangatiki county 1.9) There is definitely no intention of leving a further uniform rate on top of the UGAC. Even if a change of

govenment occurs at the next election the leader of the opposition Jim Bolger has told me personaly there will be no change to local authority boundries until at least 1992. So newly created district councils have time to settle down and operate, hopefully in a cost effective and efficent manner. In reply to Mr Godfrey, I can advise that surplus funds belonging to the former county were not used by the former Waimarino District Council to offset the cost of almagamation, as most of the costs were recovered from the Government via a special establishment fund available at the time. Yes the Raupehu District Council is intending to borrow $500,000 to assist with the funding of this year's budget for this alagamation. It is my view that at least half of that amount should be repaid by the rural residents of the former Taumarunui county who received the benefit of the work, for they should have been rated that amount last year. In regard to the remaining $250,000 it is envisaged that funds from the sale of council owned property will offset this amount.. I agree that some of the county roads have detorated; through the lack of a metal programme being implemented through being unable to continue our water tabling programme and, as a result of the $140,000 worth of flood damage caused last year and the very wet years that have occurred recently. Rates were kept lower than they should have been over the past two

years due to the financial problems being experienced by the farming industry. This resulted in a lack of funding being available to undertake essential maintenance work that should have been carried out and weren't, the results of which are clearly evident now. The top five administrators are employed on performance related contracts, there are no houses, cars, or superannuation provided by council, nor will there be any huge reduncancy packages, unless their contracts are terminated prior to the expiry date In fact it costs $160,000 less in salaries as a result of amalaging than it would have done had all the former authorities been operating independant of one another. The RDC expects to make further savings in the cost of administration and salaries as we review the entire administrative structure over the next financial year.

Garrick

Workman

Ruapehu Mayor