Committee Agrees to 5.18 Percent Average Real Rates Increase For 2008/09

Wellington City Council’s Strategy and Policy Committee yesterday approved a range of initiatives and changes for the coming financial year that will result in an average real rates increase of 5.18 percent, after allowing for growth in the ratepayer base.

The revised 2008/09 plan still has to be finally debated and approved by the full Council at a meeting next Friday 27 June.

The rates increase is slightly up on the 4.79 percent increase proposed in this year's Draft Annual Plan but below the 7 percent forecast in the Long Term Council Community Plan. The percentage increase will vary for individual ratepayers depending on capital value changes and the effect of the rates differential between businesses and households.

Mayor Kerry Prendergast says the Council would have liked to have been able to keep the rates increase below 5.1 percent to assist ratepayers who are feeling the strain of rising fuel and food prices but could not do so without cuts to services.

"Although a small number of people who commented on our Draft Annual Plan asked us to defer non-urgent spending to keep the rates increase down, the balance of opinion was clearly in favour of the limited number of new projects that we are proposing for the coming year so we have approved those.

"It is important to note that while we have committed to some new projects for 2008/09, to a large extent the increase in total rates reflects increasing cost pressures we face in delivering key services such as maintaining the transport network and looking after the city's environment. The Council is facing higher fuel and energy costs too."

The Council received 438 written submissions on the 2008/09 draft plan and 68 people came in to speak to Councillors in support of their submissions. In addition, the Council carried out a survey to gauge the level of support for the new initiatives proposed.

The Committee yesterday approved the initiatives outlined in the Draft Annual Plan. These include plans to investigate how Wellingtonians use transport and make transport choices to determine how to encourage more sustainable options such as walking, cycling or taking the train or bus; building consent fee concessions for new buildings that incorporate sustainable features like solar water heating and better insulation; and funds to improve safety in Courtenay Place, continue the anti-graffiti flying squad, support the Pasifika festival and replace the Thistle Hall floor.

The 5.18 percent average real rates increase reflects a small number of changes in the draft annual plan. These include revised cost estimates requiring an additional $430,000 for legal expenses for the revision of the city's District Plan and resource consent hearings, as well as $60,000 a year for the next 10 years so the Council can continue to notify neighbours in residential areas about resource applications for developments proposed near them. Planning staff began sending letters out to neighbours about eight months ago. Feedback on the trial has been positive, but the improved service is time-consuming and an additional staff member is required for it to continue.

The Council also agreed to provide $70,000 this year and next so it can continue to provide an eco-design advisor. The service, which is in line with the Council's guidelines on sustainable buildings and part-funded by the Ministry for the Environment, is in its first year. The additional funding will allow it to continue for another two and during that time, the Ministry will be monitoring its effects.

The new rates figure also reflects the decision made last week to budget $200,000 in 2008/09 on the planning and feasibility work required so the Council can make a bid for a share of the $250 million of funding for urban broadband projects that the Government announced in the Budget. The Government funding had not been announced when the Draft Annual Plan was prepared.