Ruapehu Exceptions Annual Plan 2013-14 Adopted without Amendment

Ruapehu District Council (RDC) has adopted the Exceptions Annual Plan (EAP) without amendment with an average rate increase for the 2013-14 financial year of 3.4%.

RDC Chief Executive, Peter Till, said that in effect this will mean most urban ratepayers will have a rate rise of between 3 and 5% and most rural ratepayers will have a rise of between 1 and 3%.

“The higher average rate increases on urban ratepayers notably reflects the need for funding for replacement of our water and sewerage infrastructure assets which are more urban than rural,” he said.

“Unfortunately much of Ruapehu’s aging infrastructure is nearing the end of its economic life and managing its replacement in an affordable manner without risking loss of services is one of the bigger issues facing Ruapehu ratepayers.”

“During the development of the Long Term Plan (LTP) 2012-22 last year council reduced planned expenditure by 25% over the ten year period in order to restrain future rate and debt increases.”

Mr Till said that despite Audit NZ highlighting that there are risks associated with this strategy council believes that by managing work priorities this approach will not put the District’s infrastructure at undue risk.

“The EAP 2013-14 keeps to the central goals of the LTP 2012-22 to balance the need for infrastructure renewal and growth against affordability and long term sustainability.”

“A 3.4% average rate increase for the coming year enables council to maintain existing levels of service while at the same time maintaining a strong balance sheet and affordable levels of debt,” he said.

Mr Till noted that council had received 112 submissions on the draft EAP 2013-14 covering 73 topics with 28 submitters choosing to support their submission with a presentation to council.

“The submissions highlighted that communities feel strongly about retaining the services they have and that expectation around council services are increasing.”

“Council’s response to some of the major submissions included; providing $75,000 as seed funding toward the National Park playground and reserve development, signing-off on relocating the Taumarunui library from its present location on Hakiaha St to its office building on Huia St, not closing the Owhango or Ongarue Transfer Stations and ensuring people renting out baches comply with all required health, safety, fire and other regulations,” he said.

Mr Till added that the seed funding for the National Park playground and reserve development will allow the community to apply to other fund sources such as Lotto.”

“The EAP proposals to close the Owhango or Ongarue Transfer Stations were only ever possibilities dependent on public support, however, it was useful to highlight that for rates to be lower than the proposed (and now adopted) 3.4% average increase services would need to be cut.”

“Commercial accommodation providers were again very vocal in their submissions on private holiday homes, homestays, B&B’s, etc that are rented out but are not classed as ‘commercial’ operators undermining their business.”

“As a critical part of Ruapehu’s tourism economy council has put a lot of work into understanding the issues they are raising and how we can realistically respond,” he said.

“The area council feels it can make a realistic and effective difference is in ensuring that rented private holiday homes are adhering to all the fire, emergency, parking and other regulations required of them.”

Mr Till said that hopefully the recent early snow will be a positive indicator for commercial accommodation providers having a fantastic ski season where they all make some good money.
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