6.8% average rate increase - watershed year

The Queenstown Lakes District Council will be asked to adopt the 2008/09 draft annual plan on Thursday proposing an average rate increase across the district of 6.8% in what is being described as a watershed year. 

“This is the third year of the 2006 Council Community Plan (three year plan) and it is predominantly about delivery,” QLDC finance general manager and deputy chief executive Stewart Burns said.

With the delivery of key projects like the Queenstown Aquatic Centre and kerbside recycling there were obvious impacts. These increased costs had been forecast in the Council Community Plan in 2006.

“Reflected in this year’s draft annual plan rates is the first full year’s operation of the aquatic centre (for Wakatipu ratepayers only) and the allocation of cost for both recycling and the new refuse collection across the district,” Mr Burns said.

The proposed rates increases for residential properties was higher relative to other property types, the main reason was because of the change in the way that the refuse collection service was delivered, Mr Burns said.

All residential ratepayers would pay a share for both kerbside recycling and the introduction of a new refuse wheelie bin service.

“Now that kerbside recycling is in place we have been able to address the issue of refuse and green waste pick up. The new refuse system will come into place this year so it is reflected in the draft annual plan,” Mr Burns said. The contract for both the new refuse service and a litter bin collection has recently been awarded to Otago Southland Waste Services.

Previously householders had a choice between blue bags or a private 240 litre collection. The council proposed doing away with the private 240 litre wheelie bin service and in its place provide a 120 litre wheelie bin service for all residents (bags will be retained for some rural and some access difficulty addresses). The smaller bin would also encourage less refuse.

The cost of supplying and emptying the bin (or rural /access bag option) had been built into residential rates for the next financial year. This equated to a cost transfer rather than rates increase for most households, Mr Burns said.

“For some residents there will be an overall saving for others the cost difference will be minimal. For example the wheelie bin hire is $282 per annum, plus those people pay a waste management charge of $152. The council’s new rate - which includes the provision of a 120 litre bin and includes the waste management charge - will be $269 per annum,” Mr Burns said. For those using a blue bag each week, a reduced saving was also possible.

“When these savings are factored into the equation, the proposed residential rates increases are much more modest,” Mr Burns said.

The council was aware that some people might feel it was not such good value.

“They are the small minority who are achieving minimum refuse. We would rather not penalise those efforts and we are keen to get feedback in the submission period on this front,” Mr Burns said.

Another major council delivery, also highlighted in the 08/09 draft annual plan, would occur on July 1, 2008, a day planned for by successive council’s since 2004.

“That day will mark the expiry of all infrastructure maintenance contracts and the contract with CivicCorp. In their place we have the new service level agreement with Lakes Environmental Limited , new maintenance contracts for water, sewerage, stormwater, reserves toilets, trees, sports turf and buildings,” Mr Burns said.

The 08/09 draft annual plan also reflected new contracts for residual waste collection, a new service level agreement for Lakes Leisure Limited (council owned company for the operation of recreational facilities across the district) and the establishment of an ‘in-house’ horticultural team.

The draft included a number of key projects including: roading improvements district-wide, a second new reservoir for Lake Hayes, a destination playground for Queenstown Bay, wastewater disposal to land (Project Pure and Project Shotover), public transport improvements for Queenstown.

In total the capital programme provided for in the draft annual plan was $66.28 million, including $9.43 million in debt repayment. The forecasted capital works programme in 2006 was $68.1 million.

The 08/09 draft annual plan showed a rate requirement of $26.4 million in targeted rates and $16.2 million for general rates.

“This represents an overall average increase of $6.8 percent, although rates vary according to property type and location,” Mr Burns said.

The draft annual plan was now available on the council website and a full summary would be available next week.

“If adopted we will be calling for submissions from Saturday (5 April) and submissions will close on May 5,” he said.

Feedback and information sessions would also be held in Wanaka and Queenstown on April 23 and 24 at locations to be confirmed.