Report on $800,000 savings to be considered on Tuesday

2 November 2012

A report recommending $800,000 in potential savings be secured and used to offset rates increases over the next three years will be considered by Waipa District Council's Finance and Corporate Committee on Tuesday.

Consideration will also be given to further review and consultation with the community on big ticket items in the council's 10-Year Plan. This includes proposals for a new museum and library in Te Awamutu and reviewing the scope and timing of other key projects such as the Cambridge Covered Swimming Pool project, Town Concept Plans and Victoria Boulevard in Cambridge.

The report follows concerns from some ratepayers about higher than expected rates increases this year.

The council has already considered a review of its Revenue and Financing Policy and has moved revaluation of properties in the district forward one year to 2013 in response to those concerns.

The report is recommending the $800,000 be split to smooth the impact on rates increases. This would see the rates requirement reduced by $400,000 next year and $200,000 in the 2014/15 and 2015/16 years.

Applying all of the savings next year could cause a larger rates increase the following year which would be outside the policy limits that the council set in consultation with the community, the report says.

Chief Executive Garry Dyet said staff had worked hard to identify potential savings while retaining current service levels.

This had been no easy task particularly following the need to fund $1.5 million in repair damage caused by storms in the district in July, without there being a direct impact on ratepayers, he said.

A review of the budgets had highlighted that there was very little room to make additional cuts without there being an effect on service levels and most of the savings identified were one-off items.

A saving of $800,000 is in effect 2 percent in rates and these have been achieved through staff being disciplined in their spending and our finance team ensuring good debt management and that the return on our investments are being maximised for the benefit of our ratepayers, said Mr Dyet.

We have a focus on continuous improvement and we will continue to operate as efficiently and effectively as possible in an effort to reduce the rate requirement in the longer term future, he said.

Once considered the committee will make a recommendation to the full council for adoption.

Further consultation with the community will take place during the council's Annual Plan process early next year.

A copy of the full report is available on the council's website www.waipadc.govt.nz.