Annual Plan: Little Change In Residential Rates

Rates will rise in the Far North this year but the funding required to balance the books will have different impacts across the residential, commercial and rural sectors.

The 2011/12 Annual Plan adopted by the council this week calls for an overall increase in rating revenue of 4.1% over last year which is within the rate of inflation and compares favourably with other rate increases across New Zealand.

The impact on ratepayers will differ as a result of variations in the district-wide property revaluations carried out by Quotable Values last year. While property values dropped across the board, the decline for farming and commercial properties was generally less than that experienced by the residential sector.

This has translated into average rate increases of 8.45% and 9% for commercial and farming properties respectively while residential properties will, on average, pay less than 1% more. Again this will vary quite widely across the district.

In a bid to correct some of the rate anomalies which are occurring, the council has signalled its intention to set up a working party of councillors and staff to consider a wide range of options and ideas for the Far North rating system during the next 12 months, or longer if needed. This is considered to be high priority. However the process will include consultation and will not be rushed.

The sewerage rate has been reduced to $581.98 ($602.57 last year), the uniform charge for water is $181.33 ($177.78 last year) and the water by meter charge is $2.45 per cubic metre ($2.40 per cubic metre last year). These figures are net of GST.

The only significant variation from the Draft Annual Plan which went out to public submission in May was an additional fund set aside to maintain and improve the level of service in areas such as beach cleaning, public toilet maintenance, litter, general town maintenance and other tourist related activities.

The principle of encouraging communities to be more self-reliant and to work with the council to reduce costs will continue to ensure that the additional funding goes as far as possible.

The Annual Plan provides for a total operating income for the year of $104 million of which $70.130 million will be raised from rates with the balance principally from fees and charges, subsidies and development levies. The council is budgeting to spend $95 million which is $2.5 million less than in 2010/11. Capital expenditure is also down in comparison with last year ($41.7 million compared with $44.7 million last year).

This year Council will progress a new water supply for Omanaia, investigate rainwater harvesting at Opononi/Omapere, introduce a bylaw requiring rainwater tanks on new properties, design a new wastewater reticulation system for Opua, upgrade the Awanui wastewater reticulation system, start design work on the Bay of Islands wastewater treatment plant (subject to consent), start design work to upgrade the Hihi wastewater treatment plant, complete major drainage improvements at Cooper Beach and Russell and increase recycling activities in line with our Waste Management Strategy.

Economic development projects and community plans will be advanced and the Disability Action Plan implemented. Consent processing will be improved, District Plan changes advanced, District Plan monitoring improved, and the Kerikeri/Waipapa Structure Plan will be progressed.

The council will continue to support planned for events such as the Ocean Swim Series, the Snapper Classic, Twin Coast Cycle Trail project, Hokianga and Mangonui Food Festivals, aeromagnetic minerals survey and Rugby World Cup activity.

In a joint statement in the Annual Plan Mayor Wayne Brown and Chief Executive David Edmunds say harsh times demand harsh measures and it is a “no frills” year with capital and operating expenditure slashed, non-essential capital works deferred, and the drive to reduce debt maintained.

The council found little room to move in this year’s budget which was a reflection of the current worldwide economic climate. The budget recognised the hardship which a flat economy had generated and that 138 businesses in Northland failed last year.

Signs of economic improvement are tentative and the latest report on growth assumptions for the Far North makes relatively dismal reading through until at least 2015. The Far North economy like most in New Zealand and around the world will continue to struggle in the short term, they say.

One area in which the council will look to draw back is "social" spending. The council will this year be closely reviewing the use of rate income in areas which, arguably, should be the responsibility of government agencies or private sector funding providers.

And the council will continue to look at ways to recover some of the cost of facilities provided to service the visitor industry. This is essentially a balancing act between the need to encourage tourism, as a major contributor to the local economy, and the need to contain the costs on ratepayers, they say.