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Saturday
Jul012017

TCB TO Review Leasing Policy

TCB will have a paper before it on Tuesday seeking guidance on universal rate relief granted in 2009 to organisations leasing council property, or land. Here is a brief synopsis of the situation that pertains at present:

In 2006, Council adopted a leasing policy along the following lines:

Category Rental Amount Category 1: Emergency services groups $100 per annum

Category 2: Clubs and Community Groups $350 per annum

Category 3: All others Market rental

The policy required that all leasees have their TCDC and WRC rates on-charged to them.

In 2009, the then Mayor pushed for a change that absolved these organisations having their rates 'on-charged.' This resulted in the following current cost to Council in terms of rates foregone:

Coromandel-Colville $14,000

Mercury Bay $33,000

Tairua/Pauanui $19,000

Whangamata $35,000

Thames $25,000

Total $126,000*

A bloody stupid move that favoured certain Board areas, and groups.

In 2016, an attempt was made by staff (as required as part of the then LTP) to review the policy - this was "paused"  to get through the Election.

They are now coming back to Boards before Council considers the matter prior to the development of the new LTP to seek "guidance," and possible restoration of charging the rates from 2018/19 as was the case prior to 2009, albeit with confusing exceptions

The proposal now before the TCB (and other Boards concurrently) allows for each Board to decide whether to adopt or reject this new proposal either in full or in part. The full Council will then make a decision.

It seems to me that confusion, and grievance will arise from giving Boards this option - it should either be in or out - just another example of Council needing to take back leadership on important revenue issues. Boards will always be suckers for the loudest bleating from affected groups.

 

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