City growth helps reduce rates in Porirua

There was robust discussion by the Council yesterday on the Annual Plan for 2016/17, which includes providing $200,000 to raise the pay of those staff on or around the minimum wage. The result is an average rate increase of 3.3 per cent.

A greater than usual growth in the rating base, adding a 1.3 per cent rates reduction, coupled with a lean approach to spending meant the 5.03 per cent rate increase forecast in the Long-term Plan was significantly reduced.

“A very clear message we’ve heard from the community is that big rate increases are unsustainable,” Mayor Nick Leggett said. “We have listened and this plan demonstrates our commitment to managing cost pressures while continuing to spend on core responsibilities like our roads, pipes and parks.

Mayor Leggett said adding the $200,000 for lower paid council employees in response to the issues raised by the Living Wage Movement was done after feedback from the community.

“The majority of submitters on this topic were prepared to pay more in rates so that council employees on minimum wage could earn more to live on. The arguments for both sides were compelling and in the end, the slight majority of Councillors took a stand on an issue the whole country is grappling with. Because we had made savings in other areas, this additional spend, equal to .4% of rates, means we have still managed to keep rate increases lower than the forecast.”

“In terms of service levels we’ve had really strong public feedback on things like beach wardens, library opening hours, parks and gardens and we thank everyone who took the time to submit. We received thoughtful and well considered submissions and they guided the Council’s decisions.”

A total of 1138 written submissions were received and 34 submitters spoke at the hearings on 17 and 18 May.

Council Chief Executive Wendy Walker says the Annual Plan is very much a business as usual budget with a focus on cost reduction in areas where the Council is looking to maximise its value for money spend.

“The Council remains committed to its capital investment programme in the Long-term Plan, and work on the Transmission Gully link roads and city centre revitalisation. Infrastructure upgrades continue to be a major priority.”

The Council will meet on 29 June to finalise the Annual Plan 2016/17 and confirm the rates and budget for the next financial year, beginning 1 July.

The following table outlines the decisions agreed yesterday.

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