Zero overall rates increase for Environment Canterbury for 2011/12

Environment Canterbury’s Commissioners have approved for consultation a draft annual plan which proposes no overall rates increase for the coming financial year. Public consultation starts on Monday 14 March and closes on 15 April 2011.

Commissioner David Bedford said although the decision to hold the overall rate take was made before the 22 February earthquake, it was even more important now for the organisation to reprioritise, and to allocate its resources to key areas of work.

“Over recent months we have reviewed and reprioritised our strategies and programmes and we are proposing a number of changes to achieve a zero overall rates increase.”

The single most significant change the draft annual plan signals is the intention to end the Clean Heat Project in Christchurch, a $3.6m reduction in the targeted rate. “This will mean rates for Christchurch city people will reduce and that is a very good thing at this time.”

In line with the Commissioners’ focus on progressing water management in the region, additional spending via the general rate is being proposed for that work, he said. The proposed additional $1.8m would be spent on implementation of the Canterbury Water Management Strategy and the Immediate Steps freshwater biodiversity programme.

While the draft plan proposes no overall rates increase, targeted rates will decrease by 8.1% (from $35.82m in 2010/11 to $32.92m in 2011-12) and the general rate will increase by 7.6% (from $38.3m in 2010/11 to $41.2m). The total rate take for the region is $74m.

“Our total rates take is a mixture of targeted rates for specific purposes, and general rates, and so the impact of the changes will vary across the region depending on particular work programmes underway in the area, and the effect of recent property revaluations.”

He said many targeted-rate funded programmes are at ratepayers’ requests and protect their land values – for example, the community-initiated possum control programme on Banks Peninsula and river rating district flood protection programmes.

“The effect of reducing the targeted rate take by 8.1%, which accounts for one third of the regional council’s overall take, and increasing the general rate take by 7.6%, will be a nil increase in rates collected overall,” he said.

Total expenditure increases by 2.6% (from $134.0m to $137.5m), largely due to changes in accounting practises for public transport, where the change to gross contracts sees contract costs and fares recognised in the organisation’s accounts. This affects both income and expenditure and the two balance out.

Public consultation starts on March 14 and closes April 15 2011. Hearings are scheduled for May 2 in Timaru and May 3 and 4 in Christchurch. The draft annual plan will be available on the website (www.ecan.govt.nz), with hard copies available from district council offices throughout the region. The final plan will be adopted, and rates struck, on June 23, 2011.

Further information
Further detail on changes to targeted rates (an overall decrease in rates take of $2.9m across the region):

A $3.6m saving is proposed in Christchurch City by ending the Christchurch Clean Heat Project. This will mean most Christchurch ratepayers will be paying less overall rates in the coming year. For example, a property with a capital value of $400,000 will see a rates reduction from $307 to $293.
A $0.3m saving in Christchurch public transport rates by the more equitable distribution of contract costs for services that link with neighbouring districts, plus savings in rates resulting from the introduction of a $10 fee for new Metrocards.
An additional $0.6m for Animal Health Board Bovine Tb funding, and $1.1m to support the Canterbury Water Management Strategy’s Immediate Steps Freshwater Biodiversity programme.
An increase of $0.4m in the emergency management portfolio to replenish reserves drawn down by the September 2010 earthquake, plus additional funding for the Civil Defence Emergency Management (CDEM) Group.

Further detail on changes to general rates (an increase in rates take of $2.9m across the region):

Next year is the second full year of implementation of the Canterbury Water Management Strategy (CWMS). Water management continues to be a major focus of council activities. The draft annual plan proposes an additional $0.7m in general rate spending on water and when added to the $1.1m increase in targeted rates for Immediate Steps Freshwater Biodiversity (see above), this brings the total increased expenditure for the CWMS to $1.8m. This takes the total budget for the CWMS for 2011/12 to $6 million.
A new Ngai Tahu work programme is being established which has a focus on water-related work ($0.4m).
Additional funding is proposed to maintain and increase resourcing for the implementation of the Greater Christchurch Urban Development Strategy.
Additional funding is proposed for the Regional Policy Statement. The draft is subject to consultation in the coming months and funding will be required to engage external commissioners and to prepare robust technical evidence for hearings.

The increases outlined above are offset by a number of savings in other areas of work.

Overview of proposed changes by district:

Christchurch general rates are increasing by $1,95m, targeted rates are decreasing by $4.39m.
Kaikoura general rates are increasing by $37,000, targeted rates are increasing by $30,000.
Hurunui general rates are decreasing by $110,000, targeted rates are increasing by $67,000.
Waimakariri general rates are increasing by $298,000, targeted rates are increasing by $175,000.
Selwyn general rates are increasing by $243,000, targeted rates are increasing by $363,000.
Ashburton general rates are increasing by $400,000, targeted rates are increasing by $162,000
Timaru general rates are increasing by $270,000, targeted rates are increasing by $161,000
Waimate general rates are increasing by $132,000, targeted rates are increasing by $84,000
Mackenzie general rates are increasing by $84,000, targeted rates are increasing by $46,000
Waitaki general rates are increasing by $27,000, targeted rates are increasing by $9,000.