Rates increase potentially less than forecast

29 January 2014

Waipa District Council is likely to propose a total average rate increase for the 2014-2015 year of around 2.9 per cent after growth; significantly less than originally signalled in its 10-year plan.

The final proposed increase will not be formally discussed by full Council until February 25. However, a draft copy of the annual plan, including any potential rates increase, has been included in a committee agenda for discussion next week.

The 2013 revaluation of the district will impact on the level of any rates increase for individual properties. Current figures suggest 66 per cent of rateable properties are likely to have a rates increase of between 2 - 4 per cent for 2014-2015. Despite rising costs in some areas, staff say they will be able to maintain the same levels of service

Costs driving a potential rates increase include the requirement to fund depreciation of $521,000, an estimated $335,000 decrease in resource consent revenue, an additional $220,000 in compliance costs driven by central government and an additional $126,000 per year in interest costs.

The council has been able to save money on things like insurances, electricity and by sharing civil defence services with other Councils.

Council's debt levels are projected to reach $28.8 million by 30 June 2015; also significantly lower than the $42.5 million that had been forecast in the 10-year plan.

Key projects included in the draft plan include a range of proposals to fund the new Te Awamutu library, investing in water supply and treatment facilities across the district and developing a town concept plan for Cambridge.

Mayor Jim Mychreest stressed the draft proposals had yet to be formally discussed and released for public consultation. But he was pleased with the general direction being taken.

Waipa is very fortunate to be in a strong financial position, to have relatively low debt and to be a district enjoying growth across the board. However, growth also means that we have to invest in infrastructure and that doesn't come cheap, particularly if we are to meet community expectations around levels of service.

The draft annual plan will be formally released for public consultation and comment in early March. Submissions will close in April. Councillors will not make any final decisions until June.

Media enquiries: Jeanette Tyrrell (on behalf of Council) 027 5077 599