Concerns have been raised by Wanaka Community Board (WCB) members and a former deputy mayor that the Wanaka Asset Sale Reserve Fund, which started at $15.6M and is now down to $9M, will be “whittled away” to nothing.

The original $15.6M was raised by the sale of Scurr Heights land by the Queenstown Lakes District Council (QLDC) in 2016, and was to be used to fund capital expenditure which “benefits the residents of the Wanaka ward”. 

To date, $6M of the fund has been put toward Wanaka’s new swimming pool at the Wanaka Recreation Centre in Three Parks, and yesterday the WCB approved a further $1M for the Luggate Hall replacement project, leaving approximately $9M in the asset fund. 

Former deputy mayor and WCB chair Lyal Cocks spoke at the meeting’s public forum, opposing the allocation of the money to fund a project shortfall.

“This reserve fund came from the sale of an asset gifted to the whole of the ward. Therefore I believe the funds should be used for projects with benefits to the wider Wanaka Ward or the strategic purchase of assets not planned for,” he said.

Former deputy mayor Lyal Cocks said the fund was “never intended to become a slush fund to cover budget shortfalls”. PHOTO: Supplied

He suggested more appropriate uses of the money could be to secure the old sewage ponds site, or to acquire the old Mitre 10 building to home groups such as Kahu Youth, Aspiring Gymsports and the Wanaka Toy Library.

“The danger of using this fund to cover budget shortfalls on smaller community projects is where do you draw the line? This fund was never intended to become a slush fund to cover budget shortfalls,” he said.

WCB member Ed Taylor said his concern was the council would “just chip away at this fund, a million here, a million there”.

“I’d like to put a stake in the sand and say we look at a significant project that wouldn’t get council funding otherwise… like a Scurr Heights Memorial Project.”

Ed asked QLDC property manager Richard Pope what would happen if the WCB did not approve Richard’s report, which recommended the board approve money for the Luggate Hall project.

Richard appeared taken aback, saying, “That’s a good question.”

“I’d need to go back and decide, would I put the recommendation without your agreement. That’s the dilemma I would face,” he said.

A QLDC spokesperson later confirmed to the Wanaka App that the decision “ultimately rests with council”, adding: “However, it is preferable to have the support of the Wanaka Community Board.”

Richard said the new Luggate Hall had been conceived and planned as an asset for the wider community, and QLDC community services general manager Thunes Cloete said the hall “will be seen as another string to our bow in the district”.

Councillor Quentin Smith said he agreed with Ed and Lyal that the asset fund “should be spent on things that are enduring and not just things that are business as usual”, adding “we need to make sure the remainder of the fund is spent incredibly wisely.”

The new Luggate Memorial Centre project “only just meets the criteria” for funding from the asset fund, Quentin Smith said. IMAGE: QLDC

He said the Luggate Memorial Centre (the new name for the hall) “probably only just meets the criteria for funding” from the asset fund.

The recommendation was passed, with only Jude Battson voting against it. Jude said she was not comfortable with the “last minute” discussion on such a significant issue.

“There wasn’t a robust process to reach the decision,” she told the Wanaka App after the meeting. The WCB members received the agenda item on Monday.

Jude said the remaining money in the asset reserve sale fund should be spent on “something that will be around forever”, and the community may want to have a say in what that is.

She suggested an arts centre could be an appropriate project. Quentin told the Wanaka App the money could also be used if the council had to purchase land at Sticky Forest.

The policy for the asset fund says it may be used to fund capital expenditure approved in the 10 Year Plan or Annual Plan for projects which will increase the level of service for the Wanaka ward (excluding services required because of growth, otherwise funded from development contributions and depreciation) and may include repayment of debt on projects which have increased the level of service for the Wanaka ward.

The funds may not be used for operating expenditure or to purchase assets which are primarily acquired for speculative purposes, the policy states.