The Central App

Mayor's column: All for one, one for all

The Central App

Mayor Tim Cadogan - Opinion

01 June 2024, 5:45 PM

Mayor's column: All for one, one for allCentral Otago Mayor Tim Cadogan. PHOTO: File

Council has taken the first steps on a journey that may complete the distritisation process that started in the 1990’s. 


That’s when the cost of roading across the district stopped being Ward based and roading decisions were placed at the council table, with costs becoming the same wherever you live in Central. 



In 2015 the same principal was applied to Three Waters.

 

Today, 82% of your rates dollar is spent on a district-wide basis, with the remaining 18% being rated and applied at a Ward level, with the Boards deciding how those funds are spent. 


With our Long-Term Plan coming up next year, council needs to have the discussion with the community now as to whether we continue like this or make more or all costs and decisions district-based.


 

For me, there are three big drivers behind needing to ask this. 


One is that we now carry debt and current regulations (especially three waters) mean we will reach our legislated debt ceiling in a few years. 


More than ever, council needs to have a grip on its spending and all spending needs viewed through a district-wide lens.

 

Secondly is an issue of fairness around the Cromwell Memorial Hall. 


Running costs, depreciation etc for this facility when opened will cost Cromwell ratepayers around $280pa per household for what will in effect be Central Otago events centre. 



There is an argument we should all contribute to those costs. 


I can hear people saying, “what the hell, it’s in Cromwell and I’m not, what do you mean fairness!?!” and I get that. 


Why should someone in Ranfurly contribute to a hall in Cromwell? 


One answer lies in the effect of the roading distritisation decades ago, without which every Maniototo rating unit would today be paying around $2,700 for roads instead of the approx $700 everyone pays. 


In the Teviot when Three Waters were distritised, rates dropped by around $700 while Cromwell’s went up by around $300. 


Fairness needs to be viewed by not just what affects us right now but also by considering what’s happened previously and what is to come.

 

The third reason is efficiency. Presently the finance team at council runs four sets of books for 18% of the business. Does that make sense?

 

Full distritisation would mean the Boards lose their say in how rates (bar Ward community and promotional grants) are spent, but Council is working closely with the Boards to ensure the community voice is heard through them at the Council table should full distritisation occur, actually expanding their roles in some ways.

 

There is an over-riding principle in this for me. We are one district of just 26,000 people. The question must be asked whether it’s time we started acting like one.