Annual Plan set to deliver one of lowest rates increases ever

4 April 2016

One of the lowest average rates increases in Taupo District Council's history is planned for the 2016/17 financial year, with 80 per cent of residential ratepayers set to get a decrease.

Mayor David Trewavas said when the Long-term Plan was adopted last year the council had projected an average rates increase of 2.42 per cent in the 2016/17 year. However, due to a number of factors including lower than expected costs, this had been reduced to a 1.1 per cent increase.

The good news is we are expecting the vast majority of residential ratepayers to actually see a reduction, Mr Trewavas said.

He said the council had heard the calls for lower rates increases and reduced debt and that was why keeping rates and debt affordable was a key thread of its Long-term Plan for the district.

Not only have we managed to reduce the amount we plan to collect in rates, we are proposing to start the 2016/17 financial year with $10 million less debt than originally forecast in the Long-term Plan, he said.

We have managed to further reduce our debt from the $150 million we ended the 2014/15 year with and that has allowed us to make some significant savings in interest costs for the coming year.

Consultation began on two aspects of the 2016/17 Annual Plan today. Under new legislation councils are only required to consult on their annual plans if there are significant changes from what they had indicated for that year in the Long-term Plan.

Mr Trewavas said the council had undertaken robust consultation with the community last year when it developed its Long-term Plan 2015-2025 and there was only one change that required further discussion with the community, extending the Taupo water supply to Waitahanui. Feedback is also sought on minor changes to some fees and charges.

We were successful in applying for a $1.942 million subsidy from the Ministry of Health to extend the water supply to all properties at Waitahanui but feedback from residents was that the cost was too high when spread across a small number of properties, and some residents wanted to retain bore water, he said. We have been investigating ways to fund the $1.033 million shortfall for the project to proceed and secure a quality water supply for generations to come.

More information on the proposed changes can be found in the consultation document available on our website or at your nearest council office. Submissions can be made until 5pm on May 6.

FOR FURTHER INFORMATION CONTACT:

Lisa Nairne Communications Manager 07 376 0762 027 839 8410

Taupo District Council

www.taupo.govt.nz