Submissions Invited For Draft Annual Plan

The council has adopted its 2008/09 Draft Annual Plan for public consultation and will call for submissions starting next week.

With the proposed average rate increase of 3.95% district-wide now whittled back from the 11.92% originally forecast in the Community Plan, council is performing a balancing act.

Central to drafting the plan, council is acknowledging the difficult economic climate affecting many ratepayers that is likely to continue in the coming 2008/09 year.

The reduction has been achieved by temporarily deferring some operating and capital items while still maintaining and improving the baseline level of services.

Council is also significantly reducing the rate requirement by drawing from internal reserves; applying a lower cost to internal borrowing; and is deferring the funding of some reserves.

Levels of council services are still planned to increase with improved sewerage treatment, exploration for new water sources, road seal extensions and road safety improvements.

The 3.95% rate increase will impact differently on the district’s three rating sectors.

For rural ratepayers it’s an average increase of 1.1%, while the industrial/commercial sector has a 0.6% increase.

The urban sector however has a 9.2% increase. 8.4% is caused by the Sewerage activity and is mainly in upgrading sewerage treatment in Woodville and Pahiatua. This follows the 2004 Dannevirke upgrade.

The Sewerage developments have been signalled for almost 10 years in long term council plans and are required by the Horizons Regional Council water quality management plan for the Manawatu /Wanganui catchment.

The council has used $200,000 of depreciation reserves instead of rates for funding loan repayments to “soften” the Sewerage activity increase.

Also offsetting the cost increases is the use of prior year cash surpluses of $200,000 for Roading and $100,000 to district-wide Footpaths. As a short term option, $146,000 has been sourced from the Roading Emergency Reserve for Roading.

The phasing in of funding recent depreciation increases will continue on all activities. Three exceptions to this are Housing, the Pongaroa Rural Water Supply and on buildings that council does not intend to replace. This follows large increases in costs that are reflected in asset values and depreciation.

The proposed plan effectively cuts funding for depreciation by $811,000 and this can only be viewed as a temporary measure as the funds in the (very) long term will be required for renewal of assets.

The use of reserves has been made possible because of the strong position of council special funds and despite their use; a net $1.1m will still be funded into reserves.

Of the $11.47m in capital items, seal extensions of Coast Road and Ridge Road Central are proposed to continue. The Saddle Road will proceed only once funding has been secured for improvements to the Pahiatua Track. The Weber Fire force building is to be replaced ($37,000) and an accessible toilet installed at Pongaroa ($9,000).

Reflecting the council’s ongoing priority to secure reliable water supplies, drilling for water is proposed in Woodville and Dannevirke, with loan funding of $250,000.

Transfers between Roading operating and capital items are making comparisons difficult. However the roading programme assumes a 2.4% cost increase and $750,000 is planned to improve the safety of roads (with a subsidy of 70%).

Deferred is the proposed streetscaping, mainly residential street improvements ($105,000) and also deferred is an administration archives building ($264,000).

The need for a solid waste transfer station in Eketahuna is now unlikely, while organising one for Pahiatua will now begin next year.

Book renewals in the Library activity have been reduced by $21,000 to $105,000 and it now matches the depreciation funding.

Of topical interest, there is no change in the Dannevirke town centre refurbishment and the loan funding of the committed costs only contributes 0.03% of the urban increase.

Housing rentals have a weekly increase of $3 for senior citizens and $7 for other tenants ($103-$110).

Increased inspection requirements by central government have raised building inspection fees by 10-15%. There is a 5% increase for cemetery fees but there continues to be no charge for RSA Servicemen/women and no change to charges for Children under 2 years old.

The Bush Multisports Trust contract has increased by $20,000 to $65,000 and as its assets are to be vested in the council depreciation will be funded to the sum of $20,000.

A one year moratorium on special fund reserves sees no allocations to the Heritage Protection and Biodiversity Reserves ($10,000 each), and the Community Recreation Reserve ($20,000).

“Council believes the programme settled in this draft document is a responsible one in the current economic climate, while honouring the intent of the Long Term Council Community Plan”, mayor Maureen Reynolds and chief executive Roger Twentyman say in a joint statement.

The consultation period runs from April 7 to May 12.

Copies of the plan and summary will be available on Council’s web site and at all service centres and libraries.