Annual Plan Submissions Debated

Submissions to the Draft Annual Plan have been debated with recommendations to be finally adopted on June 11.

Thirty-six submissions were received ranging from subjects about levels of rates to water supplies.

The draft plan recognised the current poor economic circumstances of the District. Because of this, council is taking “a pragmatic position” with regard to rate funding and in the short-term absorbing relatively high levels of inflation.

Key features of the Draft Plan were some “one-off” events that can’t be sustained with council drawing on reserves and not funding all depreciation. This was after cost cutting in a number of areas including libraries and community development.

However services are to significantly improve in a number of areas. The completion of sewerage upgrades is programmed for Eketahuna and Pahiatua, as Horizons Regional Council resource consents are expected in the financial year. Seal extensions on Coast Road and Ridge Road Central are provided along with exploration for underground water sources for Woodville and Dannevirke. The Beach Hill section is to be seriously considered as the “Coast Road” priority.

Council is now intending to spend $1,000,000 to connect the Pahiatua well to the reticulation network and to treat the water supply to new health standards. Council is doing this by bringing forward its Community Plan funding from the 2010/11 year. With government subsidies now available, Council is assuming a 75% subsidy and will internally borrow the remaining 25%.

No allowance has been made for subsidies on the sewerage schemes because the NZ Sanitary Works Subsidy Scheme has very limited funds of about $70 million over the next 5 years. With the sewerage schemes contributing to almost all of the urban rate increase – 8% of the 9% proposed increase, this is very difficult for the district and even a partial subsidy towards the capital cost could have halved this increase.

There had been a chance for significant funding in the recent budget following the Government rates inquiry and recommendation for $100 million p.a. of government funding towards water and wastewater costs. Local Government NZ has commented “The lack of Government attention to local government funding and infrastructure pressures will inevitably lead to more rates rises”. Unfortunately for Tararua, this is already underway.

Council intends to address questions surrounding the appropriate level of the uniform annual general charge and district wide rating in the upcoming rates review. Meanwhile the current structure of the uniform general rates will remain close to the 30% legal limit at 28.67% for the 2008/09 financial year.

A belief that expenditure “needs to be reigned in” for both solid waste and escalating recycling costs is prompting the council to review the recycling programme. However “responsible” use of recycling facilities will be encouraged through public education. An additional requirement of $27,500 is included in the budget for the upcoming new refuse/recycling contract. Increasing oil prices are a major factor in the increase.

A suggestion that the council act as a purchasing agent for water tanks “has possible merit” and a bulk arrangement with suppliers will be investigated.

The council has confirmed its intention to raise rural dog fees to $18 a year reflecting increased costs while these fees have remained static for four years. They still compare well with neighbouring fees. The dog fees for urban dog fees have increased over that time.

Council is declining to fund the cost of an expert opinion into the feasibility of extending the hard structure for preventing erosion at Akitio beach, as the Council has no assets within the vicinity of the foreshore that require such protection at this time.

Council has decided not to fund the Heritage Protection Fund in the next financial year.

Provision for the Eketahuna Town Centre refurbishment will be included for consideration in the next Community Plan.