Waipā considering 2.4 per cent rate rise
Waipā councillors are set to make recommendations to Council on its revised Draft Annual Plan on 16 June, including proposed rates for the coming year.
On Tuesday, Council’s Strategic Planning and Policy Committee will consider recommending an average 2.4 per cent rates rise for the 2020-2021 year, less than the 4.2 per cent increase initially proposed in February, and less than the 2.7 per cent increase originally forecast three years ago in Council's Long Term Plan.
If supported, a recommendation will go to full Council at the end of the month for adoption with the rates increases coming into effect from July.
Chief Executive Garry Dyet said Council has undertaken ‘substantial’ work to review all operational budgets, capital works, revenue and internal resourcing to keep rates as low as possible.
“We started 2020 on the understanding our next financial year would be challenging as we dealt with the impacts of constrained labour markets and higher construction costs. Now our focus has shifted to leading the recovery programme for our district from the global COVID-19 pandemic,” Dyet explained.
“The coming year will be the most challenging year we have faced in recent times.”
Dyet said Council staff had worked tirelessly to find the right balance between providing short-term rates relief for residents and continuing with projects and activities to help the local economy recover.
Council’s revised Annual Plan for the 2020-2021 year is made up of $97.82 million in operating expenditure, $186.61 million for capital expenditure, and $124.38 million for revenue. External debt sits at $185.5 million.
Only 55% of Council’s revenue comes from rates. The rest is made up of development contributions, fees and charges and funding from Government agencies. Council is forecasting a significant drop in revenue, largely due to a projected 18% decline in residential and non-residential construction as a direct impact of COVID-19.
Dyet said any further reduction in costs to make savings in rates will likely result in a reduction in the services that make our district an attractive place to live and invest in.
The public consultation process on the Draft Annual Plan commenced on 23 March 2020 and ended on 24 April 2020. Forty-two submissions were received from individuals, interest groups and community organisations.
Key themes included the economic impacts of COVID-19, limits on rates increases, rates remissions and rebates, fees and charges, comment on core infrastructure, deferral on non-essential expenditure, reduction in staff salary budgets, and community funding proposals.
Eleven submitters presented verbal submissions with hearings held by audio visual link on 26 and 27 May.
The rates information database has been updated with the proposed rates and can be accessed at https://www.waipadc.govt.nz/our-services/rates/rates/rid.
For more information, contact: Charlotte FitzPatrick, 027 300 9836