Mrs Steed said community probation workers were routinely assigned to clean off the graffiti.
She was frustrated the council had not taken heed of her request to close the lane since she first submitted a proposal to the annual plan in 2010.
The council replied in April that a decision had been made not to close the alleyway.
Lights in the lane had never functioned properly, she said.
"We don't want the lights as this just attracts loiterers who stand under them at night drinking alcohol and smoking drugs," she said.
Many nearby residents were terrified to walk through the alleyway during the day.
She believed the offending would only get worse as the summer approached.
Aorangi School principal Debra Harrod said closing the alleyway would not inconvenience pupils as many did not use it to get to and from school.
"It's been an ongoing issue for us having undesirables vandalising school property."
Council infrastructure services group manager Andrew Bell said a residents' survey showed many locals were adamant they did not want it closed because it was used by school students.
"The weight of opinion at the time, along with legal difficulties in closing what is a designated 'legal road', resulted in a decision by the mayor and councillors not to close the walkway."
Mr Bell said street lighting provided under the 2012-2013 district works programme was to be completed in July and the council was waiting for the lines company to connect power.
Meetings were held on Friday and yesterday on site, with the lines company.
He said the walkway lighting should have been operational from last night - "all going well".