The Local Government Minister wants councils to prioritise the must-haves over the nice-to-haves.
Simeon Brown told 1News that the coalition government has inherited an inflationary environment, which is having an impact on local government finances and means councils will need to keep a close eye on expenses.
“Our government expects councils to work to deliver the important essential services that ratepayers expect. This means prioritising the must-haves and critical infrastructure over the nice-to-haves.
“The Government is also developing a strategic framework for City and Regional Deals to support councils with delivering the infrastructure needed in our communities,” Brown said.
The Christchurch City Council has received more than 7000 submissions for its long-term draft plan, in which it cut funding to The Arts Centre and Orana Wildlife Park.
Arts Centre director Philip Aldridge said he need $1.8m to keep the doors open.
“We’re an arts organisation which survives on public funding, and we’re also the largest collection of heritage buildings in the country, which cost more money than you can get out of them in rents and leases.”
Orana Wildlife Trust chief executive Lynn Anderson said she wants $1.5m a year from the council to help take care of the 1000 animals it has.
“We’re very grateful to the council for generally providing $250k per annum towards operational costs but to put that in perspective our entire budget is $5m.
“We are one of the four major zoos in New Zealand and the only major zoo in the South Island and looking at the other three major zoos in Auckland, Hamilton and Wellington — their councils provide between $5m to $6m each year,” Anderson said.
The rebuild of the Christ Church Cathedral is in doubt too, as it needs another $114m, including $30m of that by August, to avoid it being mothballed.
Local Government New Zealand president Sam Broughton said nationwide councils are needing to make some tough calls right now as they decide on their long-term plans.
“There is a lot of pressure on rates as the primary revenue tool for councils.
“It’s no secret that the funding system for local government is broken. Relying so heavily on rates is unsustainable.
“The Government needs to give councils more funding and financing tools to ensure we have a local government that can deliver the infrastructure and services that our communities expect of us,” Broughton said.