Debt restructuring major focus of 2014/15 Draft Annual Plan

The draft Annual Plan is based on Council's main strategic planning document, the Long Term Plan (LTP). It details the activities Council intends to carry out over the coming financial year, how much these activities will cost and how they will be funded. The plan, which are required by law, is prepared in consultation with the public.

Limiting operational costs and restructuring debt to enable a balanced budget' are the two major focusses of Taupō District Council's 2014/15 Draft Annual Plan, which will be released to the community for feedback on March 31.

Councillors this week considered the make-up of the plan and reviewed the projects initially set down for the 2014/15 year in the 2012-22 Long Term Plan. The result was a 0.9 per cent increase in draft rates funding required to maintain the current levels of service and activities and a 6.4 per cent increase to complete the final phase of the council's goal to no longer be putting interest payments on the credit card.

What this will mean for individual properties will differ on a number of things including location, property value and the services received.

Mayor David Trewavas said it was important the council took the bull by the horns and completed the previous council's goal of restructuring its debt so any future proceeds from asset sales would be used to reduce the amount of the loan, not just pay the interest.

While it is a bitter pill to swallow, at least once this final year of debt restructuring is complete we will be in a better position to limit any rates increases going forward, he said.

Mr Trewavas said the staff had done extremely well to reduce operating costs by more than $100,000, particularly when the Consumer Price Index at December was 1.9 per cent. The main driver behind the 0.9 per cent increase was the need to fund an extra $1.1 million in depreciation.

The previous council signalled a 7.5 per cent increase of rates funding for the 2014/15 year of the long term plan and we have come under that while at the same time are responding to calls to better manage our debt, he said.

We are looking forward to taking the draft out to the community for their feedback.

The council will officially adopt the draft plan at its March meeting.

FOR FURTHER INFORMATION CONTACT:

Lisa Nairne Communications Manager 07 376 0762 027 839 8410

Vicki Waterhouse Communications Advisor 07 376 0718 027 484 2549

Taupō District Council