It says,
Council will be presenting rates rise options for the public to consider during their Annual Plan consultation in April 2023 as they grapple with high inflation.
Financial challenges from cost pressures across all budgets have been compounded this year by Cyclone Gabrielle. To deal with these challenges and set itself up for the future, Council will be putting forward a higher than planned rates increase of 10.9% with a lower option also being consulted on.
This is proposed to help minimise impacts on service delivery for the community.
Council did not take lightly the decision to propose a rates increase beyond the 7.9% that was originally set as part of its Long Term Plan 2021-31, Mayor Vince Cocurullo said.
“We are very aware of the pressures being faced by households and businesses across our District. Our challenge as a Council is that one of our main sources of income is from our ratepayers – who along with Council – are all feeling the pinch and the impact of spiralling costs.
“At the same time, we need to fund repair and recovery from the recent cyclone,” he said.
On Thursday (16 March), Councillors heard that staff had been through Council’s books and programmes to see where savings could be made to minimise any rates increases. They had managed to find operational savings and capital expenditure that could be deferred for the 2023-24 year.
Under the current draft budget, 3% of the proposed 10.9% general rates increase would be specifically allocated to roading to boost funding in this area and respond to recent severe weather.
“Our community needs a well maintained, safe and reliable roading network for our communities and economy to thrive. As a District we cannot afford to ignore or defer the need for this investment,” says Cocurullo.
An alternative option of a 7.9% rates increase will be put forward as part of the public consultation through April. Under this option, Council will need to manage any reductions in service delivery. This is also likely to result in increased financial pressure in future years.
Once the consultation document is adopted on 30 March, Council will be calling for submissions from 5 April until 5 May 2023. Following that hearings will be held, then Council will set the rates in June, before Council’s financial year begins on 1 July.
Mayor Vince Cocurullo said there was a high level of awareness at Council of the pressures facing the public this year, and also of the standards that need to be maintained to avoid greater costs in future.
“These are weighty issues and our best guidance will come from the public,” says Cocurullo.
Former WDC councillor, Frank Newman, has condemned the proposed increase.
"It's simply not good enough to say the council has been through the books to look for savings. I understand the "savings" they found totalled just a few hundred thousand dollars. I suggest they did not look hard enough!
"They could start by having another look at the $10.4m they have just committed to the Oruku Landing project! They could have a look at the additional money they have committed to Hundertwasser, when we were assured not so long ago that it would not cost ratepayers any more than had already committed.
"Perhaps councillors need to look at the planning department and ask if that department is a good use of money and the effect it has had obstructing progress in our district.
"Perhaps Councillors need to reflect on their decision to build their palatial office building in Rust Ave. Perhaps some councillors need to ask themselves if it is they who are part of the problem rather than pretending they are the solution."
Make your thoughts known to the WDC. Public submissions will open on 5 April and run through to the 5th of May.
