New infrastructure levy would boost spending for new projects
The city is considering adding a new tax to pay for infrastructure projects, including parks.
In a report to council, Parks Manager Robert Parlane revealed a $190 million deficit, when it comes to the development of the city's supply of parkland.
He says the plan is to make that up over the next 20 years.
"If we split the total funding target over the 20 year period, we have an annual funding target of $9.9 million. We compare that to the existing budget of $1.5 million, and it gives us an optimum additional funding target of $8.4 million, and that's where we'll start from," he said.
Parlane says staff have designed four possible funding options, and are pushing for the second one.
"Option two adds the infrastructure levy on general taxation – the report talks about a range of 1-2%. This is directed to funding across the whole of the infrastructure portfolio, not merely parks."
Of the $190 million, development cost charge revenue would cover roughly $66 million, leaving $124 million currently unfunded.
Acting City Manager Joe Creron reflected on a simpler time in the 90s, when there was more cash available for this kind of thing.
"There's other greater demands. I think we used to have a capital program of $21 million per year, and now we're down to about $14 million," he said.
"So there's other things that are happening, including building these fantastic active transportation corridors. We're investing in transit. So things have kind of gotten out of balance a little bit, and that's one of the things that Robert's trying to do, is bring it a bit more into balance. And it's going to take some time."
The plan will be studied further, and brought back to council before it's approved.
