Marlborough District Council has adopted its budget for the 2019-20 Annual Plan. This budget, maintains the direction, priorities and levels of service of its 2018-28 Long Term Plan. The budget was adopted for public consultation at this morning’s Council meeting, and public submissions open on 5 April.

Mayor John Leggett says Marlborough District Council is maintaining its focus on capital investment for Marlborough’s core infrastructure.

“Last year we spent a record $63.1M on roads, footpaths, sewerage and water supply, waste management and community facilities. We’re maintaining a similar level of investment this year and next,” he says.

“While our Long Term Plan forecasted a rates increase of 5.72% for the coming financial year, we have been able to reduce that down to 3.96%.”

The Mayor says the two biggest drivers of the rating increase are Council’s capital expenditure level and inflation, which is forecast in the Local Government Cost Index (LGCI) at 2.32% this year. The LGCI measures cost increases for councils’ key expenditure items like bitumen, diesel and pipes.

“While we can’t control inflation, this Council believes it is critical to continue our momentum and invest in the core infrastructure that is so important for Marlborough’s long-term future.”

Proposed expenditure in this year’s annual plan is broadly in line with forecasts in the 2018-2028 Long Term Plan, with Council investing $519M on core services over the ten years.

“We have many significant projects coming up - for example, we’re spending over $10M to upgrade Renwick’s water supply over the next three years. In Havelock, we’re building a new water treatment plant and have budgeted $4.725M over the next two years for that.”

“In Picton, over $4M has been budgeted to replace the Speeds Road pipeline and another $2M to improve drinking water quality via an upgrade to the Essons Valley Treatment Plant. In addition we’re spending $4.837M this year to finish the Waikawa trunk sewer upgrade.”

“Blenheim’s growth is driving the upgrade of our sewer network and pump stations. Just over $13M is allocated this coming year, and another $6.27M in the following year, to build a new stormwater and wastewater network in the north-west of Blenheim, including a pump station in Bomford Street.”

“Without this investment, residential section development cannot occur, which of course helps ensure that our level of housing supply improves.”

“$7.03M has been budgeted to improve water quality in Riverlands over the next two years and $9.5M has been allocated over the next ten years to fix Blenheim’s earthquake-damaged sewer network.”

The new $4.4M Seddon Water Treatment Plant build is almost complete and for the first time ever Seddon can enjoy treated water to the New Zealand Drinking Water Standards.

Almost a quarter of Council’s capital expenditure is for road and footpath renewals, at $15.267M this coming financial year. Council’s many transport projects (listed on page 17 of the budget summary document), range from bridge replacements to road widenings and new cycle lanes.

Increased investment is also going into Council’s environmental management function to implement the Marlborough Environment Plan and a range of national standards and regulations.

Additional resources are also going into economic development initiatives, such as the new Smart+Connected Labour and Skills Group, the Marlborough Screen Office and the Te Tau Ihu 2077 Regional Growth Strategy.

“It is also vital that Council keeps investing in community facilities and progressively upgrades its town centres in order to attract the future workforce needed to enable our successful industries to grow, and for new industries to come through.”

The Mayor noted that all of the Council’s budgeted revenue and expenditure has been reviewed on a line-by-line basis.

“Savings have been identified and some projects have been delayed. We’ve taken a fairly tough approach to identifying savings and I thank Councillors for their input in helping make these sometimes difficult decisions.”

The Council’s level of borrowing is forecast to remain modest and within its net debt cap for the next 10 years. Marlborough District Council is one of only seven New Zealand local authorities that recently had its credit rating increased from AA Stable to AA Positive by rating agency Standard and Poor’s.

“I now look forward to hearing the public’s thoughts about what they think of our plan and what areas or projects they think should be priorities.”

Annual plan key dates for consultation

28 February 2019
Council considers 2019-20 Annual Plan Budget

4 April 2019
2019 - 20 Annual Plan Consultation Document adopted for consultation

5 April 2019
Annual Plan Submissions open

6 May 2019
Annual Plan Submissions close

4-6 June 2019
Annual Plan Submission Hearings

10 June 2019
Council considers Annual Plan Submissions

27 June 2019
Annual Plan adopted and rates set for 2019-20 rating year

1 July 2019
New rates are effective.
ENDS

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