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Rates increase
Which average rate increase for 2009/10 do you consider to be in the best interest of our community?
Rate increases options
What is a fair rates increase for 2009/10 and subsequent years?
That’s the question the council must decide as it juggles the community’s ability to pay with expectations of the services and amenities the council should provide.
If rates were higher than outlined in the Draft 10-Year Plan 2009-2019, what services and amenities would be increased? If lower, what services might be reduced or lost?
The council has developed three rating options. The three plans have similar debt levels but different levels of service and rates. In Referendum ’09 voters are asked to choose their preferred average rates increase. Or you can opt for the council to make the decision.
The table below shows the effect of the various rates increase options on each category of ratepayer. The options present an average percentage rates increase for each category. Please note that the actual percentage will vary on a property by property basis.
Lower (3%)
Medium (5%)
Higher (7%)
Residential
3.1%
4.8%
7.1%
Farming
2.1%
3.6%
3.6%
Commercial
2.4%
4.2%
6.3%
Overall
3.0%
4.7%
7.0%
The Low option (3% rates increase)
The Low option takes the Medium (approximately 5%) option and may exclude or defer the following additional items. These items are indicative only.
- Reduce council costs and services by a total of $520,000 in 2009/10
- Mowhanau camp and cottage electrical upgrade $17,000 in 2009/10
- Sarjeant Gallery exterior cladding $130,000 in 2009/10
- Water supply pipe replacements $850,000 in 2010/11
- Digitisation of council records $96,000 in 2010/11
- Peat Park toilets $154,000 in 2010/11
Risks and consequences associated with these exclusions:
- Council is carrying out a detailed activity review to gain efficiencies in staffing, interest and other costs. The risks and consequences of this review are dependent on where the savings are found.
- Council has started a programme to improve the weather tightness of the cladding at the Sarjeant Gallery. Delaying this project could result in additional costs when the renewal programme recommences.
- The deferment of water pipe asset renewals, particularly in the urban area, may reduce the level of service due to increased likelihood of leakages, water pipe failures and the loss or reduction of supply. Therefore, increased risk of water restrictions and higher maintenance costs could result.
- Council is digitising its records and, in particular, the building packets. Delaying this work may increase the risk of council losing vital information on properties in the district.
- The exclusion of the Peat Park toilet upgrade will mean the toilets will remain in their current condition.
The Low option is based on a rates increase of 2%-3% in 2009/10 and 2010/11, and potentially increasing rates to 8% in 2011/12.
The average residential rate for 2009/10 under this option will be $1,681.
The Medium option (approximately 5% rates increase)
The Draft 10-Year Plan 2009-2019 has been developed using the Medium option which is an average rates increase of 4.9% in 2009/10. Rates increases in years 2010/11 to 2018/19 are between 3%-6%. Council has had to exclude or defer certain capital projects to achieve this.
The average residential rate for 2009/10 under this option will be $1,712.
The Higher option (7% rates increase)
The Higher option takes the Medium option and adds the riverfront pathway from Bates Street to Moutoa Quay as a capital project. The total cost of the project is $2M funded evenly over three years from 2009/10 to 2011/12.
The benefit of constructing this section of the riverfront pathway is that it will complete the project by linking the boardwalk from the Cobham Bridge to the Waimarie jetty, with the pathway from the Dublin Street Bridge to Bates Street. This will enhance access to the riverfront for the community.
The average residential rate for 2009/10 under this option will be $1,747.
There is also an option in Referendum ’09 to let council decide the level of rates increase.
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