Rates increase of 3.3 percent planned for 2013-14 year

5 February 2013

A proposed total rates revenue increase of 3.3 percent for the 2013/14 year will be considered later this month when councillors are asked to approve the draft Annual Plan.

This is 1.4 percent less than the 4.7 percent increase originally forecast in the council's 10-Year Plan.

The reduction is the result of the council being able to claw back $800,000 worth of savings following ongoing review of its budgets.

The draft plan was considered by the council's Strategic Planning and Policy Committee today and recommended for adoption.

Mayor Alan Livingston said staff had worked hard over the past 12 months to find savings for the benefit of ratepayers and the council had resolved to use $400,000 to offset the rates in the 2013/14 year.

The remainder will be used to offset the rates requirement needed over the following two years.

Mr Livingston said the key drivers for the increase included the legislative requirement to fund depreciation, moving the district revaluation forward a year to avoid a clash with the three-yearly review of the Revenue and Financing Policy and the need to fund election costs.

These three things are required for us to meet our legislative requirements and without the savings being applied would have meant a 3.7 percent increase on their own, said Mr Livingston.

The council would be seeking feedback from the community on the other drivers which included $60,000 for a structure plan to guide future development of Ngahinapouri, a $66,000 contribution to the Mayoral Forum to further investigate cross-council efficiencies and $50,000 to support activities relating to the 150th Anniversary of the district.

We heard the calls for reduced rates increases from ratepayers last year and we have held our costs at last year's level while continuing to deliver a capital works programme to cater for growth and infrastructure maintenance.

Our need for new borrowing in the draft plan is expected to be $7.5 million to fund core services and infrastructure, as predicted in our 10-Year Plan, and our debt of $35.8 million is expected to remain one of the lowest in the Waikato region on a debt to head of population ratio, he said.

With the launch of the council's new website ratepayers would be able to see more accurately what the draft plan would mean for their rates through an online rates calculator.

This would be available once the consultation period began on the draft plan on March 5.

At this point we want people to get involved and have their say. We will be introducing a range of new online tools, and sharing our plans with the community through public meetings and at our annual Kite Day so it will be easier than ever before, Mr Livingston said.

The draft plan goes to the council meeting for approval on February 26.