MEDIA RELEASE

Lower rates increase possible for 2013/14

13 FEBRUARY, 2013.

Councillors have begun discussing elements of the Draft Annual Plan for 2013/14 based on the 2012 Long Term Plan.

At a workshop last week they heard that the rates increase for 2013/14 could be reduced to 5.2% compared to the rise of 6.9% forecast in the Long Term Plan.

The workshops, which are open to the public, will run through this month to the middle of March.

Workshop chair Ross Church stressed that final decisions would only be made once submissions had been received from residents and considered by Council. “We are only early days into the discussion process which will later include full public consultation”.

The Long Term Plan identified a rates increase of 6.9% for 2013/14. Papers prepared for councillors last week indicated a possible increase of 5.2%.

“Clearly we are pleased that this is lower than what was indicated in the LTP, and I know there is a keenness around the table to reduce this figure even more, but it is always a balancing act.”

An inflation estimate of 2.7% makes up a big chunk of the 5.2% increase. The 2.7% is based on the local Government Inflation Index produced by the Bureau of Economic Research (BERL) for all of Local Government, rather than the Consumer Price Index.

Council is proposing to the lift the financial hardship rates remission budget by $25,000 to $150,000 in 2013/14 to include recognition of the impact of one-off costs associated with fixing water leaks on private land for low income households.

Council is planning to continue the substantial capital works programme outlined in last year’s Long Term Plan. This will include $7 million for upgrading the Waikanae Water Treatment Plant, $6 million for the Waikanae River Recharge scheme, $6.5 million for road improvements, $3 million for stormwater improvements, and $3.7 million for wastewater renewals and improvements.

Full details will be published in the Draft Annual Plan available for consultation in late March.

ENDS

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