Committee Agrees to Housing Offer and Rates Increase

Wellington City Council's Strategy and Policy Committee yesterday agreed to accept the Government's offer to invest $220 million in the Council's rental housing over the next 10 to 15 years.

It also approved a range of initiatives and changes for the coming financial year that will result in an average real rates increase of 4.37 percent, though individual changes will depend on capital value changes and the effect of the rates differential between businesses and households.

The increase is slightly up on the 3.84 percent increase forecast in this year's Draft Annual Plan and reflects support of a number of issues raised by residents and organisations during consultation on the plan.

The housing decision and revised Annual Plan will be finally debated and approved by the full Council at a meeting next Wednesday 27 June.

Mayor Kerry Prendergast says the Government's housing offer represents a substantial capital investment in the Council's social housing that the city would have struggled to fund on its own.

"It will enable us to upgrade our housing to a safe, secure and appropriate modern standard, which will be great for our tenants and the city as a whole."

She says the Council has succeeded in keeping the projected rates rise below that forecast last year despite significant pressures including rising interest rates and labour costs, higher than expected bulk water prices and infrastructure costs well above the level of inflation.

"By making some internal savings and reprioritising some work, we have also been able to fund or respond to additional requests that have come to light over the last few months or been raised during public consultation on the draft plan."

Almost 1000 written submissions were received on the plan and 75 people spoke to Councillors in support of their submission during oral hearings on the draft plan in May.

The Committee agreed to several additional new initiatives yesterday. They voted to make a contribution of $2 million over the next two years towards the construction of a National Memorial Park on Buckle Street; to assist the Basin Reserve Trust to replace the existing irrigation system and build new media facilities; and to assist the New Zealand Film and Television School with its proposed relocation to new premises.

They also agreed to make a grant of up to $70,000 to St Andrews on The Terrace so the church can get on with essential work on the historic Terrace property. The church is planning to sell Crossways Community House in Mt Victoria to fund the work and the grant, which is subject to a number of conditions, will allow it to delay the sale by a year.

"This will give the Save Crossways Group and Mt Victoria community the opportunity to see if they can raise the money necessary to buy the building," says Mayor Prendergast.

Following consultation, the level of marina charge increases proposed for Evans Bay and Clyde Quay marinas have been reassessed to reduce the impact on berthholders.

Other things the Committee supported include:

• a wet hostel - providing $500,000 over two years ($250,000 per year) for the establishment of a wet hostel in partnership with Capital & Coast District Health Board to support people who are sleeping rough or are homeless, who have a history of heavy drinking and who are unable to sustain tenancies in any other accommodation.
• anti-graffiti flying squad – spending up to $225,000 trialling an Anti-Graffiti Flying Squad to remove graffiti and tagging from areas that are not currently covered by the Council.
• a tsunami warning system for Wellington – spending $100,000 improving the city's warning system for tsunami and other coastal emergencies by purchasing two mobile siren/PA systems that can be fitted to helicopters and also to install a number of strategically positioned fixed sirens.
• changes to swimming pool charges – from 1 July (subject to final approval by the Council next week) the price of a swim will increase from $4 to $5 for adults, $2 to $3 for children, 50 cents to $1 for pre-schoolers and $2 to $2.50 for Community Card holders. The 12-clip adult concession card will be retained and a new monthly swim membership introduced for children and adults to reduce the impact of the increased charges on people who are high users of pools.  
• changes to library charges – these include increasing the cost of borrowing DVDs for adults from $3 to $4 per week along with the introduction of a new 50 cent a week charge on magazines and children's DVDs. 

Related Links

• Draft Annual Plan 2007/08
• Housing
• Strategy & Policy Committee - Agenda - 20 June 2007

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