Timaru District mayoral candidates disagree on what is best for community projects with ballooning costs

The Timaru District’s mayoral candidates are at odds over how to tackle the rising costs of projects with one calling for a public referendum and his opponent labelling that naive.

Stu Piddington’s referendum call comes on the heels of news on Friday that the Theatre Royal and Heritage Hub’s facing a cost blowout from $29.5m to possibly $60m.

Nigel Bowen, the current mayor who is seeking re-election, said that Piddington’s call “seems completely at odds with his opinions inside the chamber”.

Piddington, a Timaru District councillor, wants a public referendum, so ratepayers can make a ranking list for projects and determine an acceptable amount of debt ratepayers are prepared to take on, or a rise in rates.

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He said the referendum call on the five major projects is because “costs will likely balloon to over $165m over the next nine years”.

Bowen’s response was that “it shows a naivety and lack of knowledge about how the funding of infrastructure projects work and over the same time period we will be spending a similar amount on core infrastructure”.

Piddington said, in a perfect world the council could fully fund all the community projects in the pipeline, but with costs “spiralling out of control” he believes the council needs to be “fiscally responsible”.

“We now have the Theatre Royal and museum at near $60m, the stadium extension at Aorangi Park was $23m, but we have since found out the existing stadium is earthquake-prone so that could potentially double to $46m.”

“There is also the Aigantighe Art Gallery replacement that could be $20m, plus the heritage house upgrade of at least $3m on top of that.

“The upgrade of the CBD is almost $35m and even the airport terminal will run $3m over budget if the design is kept.”

Piddington said it was important to remember the project costs were only estimates and the actual amount may in fact be more.

“Those cost escalations mean the council will either exceed its debt to revenue ratio dramatically or rates will blow out. Either way, the ratepayer will be picking up the tab,” he said.

“It seems insane to me not to consider the projects altogether with these cost escalations.”

“Timaru District Council debt is around $185m and while these projects are in our long term plan it is nowhere near the level of what they will cost.”

That is without extra requests from worthwhile community projects like CPlay, Fraser Park and Lions’ extension of the children’s bike track on Caroline Bay, he said.

“I think our rural ratepayers would like more money in the pot for road sealing and repairs. I’m not saying it’s easy at all but I don’t think we can do these things in isolation, without looking at the big picture.”

Bowen said it isn’t as simple as Piddington says it is.

“He over simplifies the approach to these projects by only referring to vertical infrastructure and community projects,” Bowen said.

“What projects are included for a referendum and what projects aren’t?

“One of our most important projects, likely to cost around $25 million, is the micro filtration plant for Timaru urban water.”

Piddington said that it is only fair that ratepayers have a say in prioritising the council’s major community-based projects, but Bowen responded by saying “to have the community choose between our water supply and a stadium via a referendum defines poor leadership and could cost our economy and community unfathomable losses”.

“Our ratepayers understand the challenges of cost escalation in their everyday life. I believe the plan we have agreed to with the community is a good one,” Bowen said.

He said there may need to be some sacrifice on the scale and timing of some future projects but nothing that the council can’t achieve through consultation, strong community voice and good governance.