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- March 04, 2022
Indicative general rates rise in line with Long Term Plan
At a recent briefing Council staff presented the preliminary financial statements for the upcoming Annual Plan (2022-2023).
Elected Members have kept the proposed general rates increase to 7.13% (after factoring in growth of 1%), mirroring what had already been indicated through the Long Term Plan (LTP). Consultation as part of the LTP was comprehensive, and feedback raised by the community during the pre-engagement and consultation was incorporated into the final LTP.
Council has worked hard to keep the proposed rates increase down, and this has included deferring some work originally proposed for this upcoming year. The indicative increase reflects adaptations made by Council to meet the needs of our district’s growth, changes to the costs of doing business, and a number of government requirements under the new water legislation and regulatory body Taumata Arowai.
Although the proposed general rates increase for this year mirrors that indicated in the Long Term Plan, there is some variation to work planned to be undertaken. These changes were adopted by Council at the 15 December meeting, and do not include any new or alternative choices for the community to make. As a result, Council decided not to undertake formal community consultation on this Annual Plan.
Some of the specific changes from the LTP include:
- The implementation of a modern Waste Minimisation Strategy was deferred to late 2023 after feedback from the LTP consultation. The deferral of the implementation enables staff to do further work to understand how to best meet the needs of both rural and urban Kaipara communities, ensuring a cost effective level of service for both settings.
- The District Plan Review, already budgeted for in the LTP, has been brought forward to this year, addressing community feedback about the need for the current District Plan to be updated.
- Increases in operational costs including maintenance and operations contract renewals over and above what was projected in the LTP.
Also outlined in the Council Briefing was the indicative Water by Meter charge for 2022-2023, which is expected to increase by 17.74% on the previous year. The Water by Meter charges increase is a targeted rate for those on or capable of connecting to Council’s reticulated water supply networks. The increase directly reflects legislative requirements imposed by Taumata Arowai. Council is now required to complete additional water testing, risk management plans and health and safety reviews. The proposed increase also allows for projected increases in the renewal of maintenance and operations contracts for water supply. This cost remain subject to change as final figures will not be known for another few months.
Staff continue to work on the draft Annual Plan document and on the financial statements. The draft Annual Plan document will be presented to the May Council briefing, and set to be adopted in June.
What is a Long Term Plan and an Annual Plan?
Every three years Council develops a Long Term Plan (LTP) in consultation with the community. The Long Term Plan (LTP) sets the Council's strategic direction and work programme for the 10 years ahead. It outlines the services the Council will provide, the projects to be undertaken, the cost of doing this work, how it will be paid for and how the performance for each shall be measured. Our current Long Term Plan Towards a Better Kaipara-Long Term Plan 2021 - 2031 (LTP) was adopted on 30 June 2021, following community consultation.
In the two years between adopting an LTP, an annual plan is developed. The Annual Plan is a yearly update on what has been agreed through the LTP, highlighting any budget changes and work plans for each specific year.
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Ngā mihi mō au korero whakahoki!
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