New Plymouth rates to be discussed

New Plymouth residents could still face a rates rise in the next financial year but it will likely be half of what was planned.

At an extraordinary meeting on Tuesday, councillors will consider five rates options for the new financial year, which will start on July 1.

Prior to lockdown, the draft Annual Plan had predicted an average residential rates rise of 4.75 per cent, and 6.47 per cent overall.

But if the recommended option is chosen, average residential rates will go up 2.54 per cent (a 46.5 per cent reduction from the planned rise), with a total rates rise of 3.95 per cent (a 38.9 per cent reduction).

The new options range from a 6.47 per cent rise through to a zero per cent rates rise.

For the zero per cent option work has not been detailed but ‘‘it will likely require some form of deeper budget cuts and service level reductions which will require an amended LTP (Long Term Plan)’’, the report to councillors said.

‘‘These changes take careful planning and staging during the transition to alert level 2 and alert level 1.’’

The rates will be considered alongside a range of other initiatives for the council’s $20 million Get Us Back on Our Feet package.

In a statement, New Plymouth mayor Neil Holdom said council was looking to largely debt-fund the package, because a rates-funded package would see rates go up almost 12 per cent.

‘‘We think this draft budget strikes a fair balance between helping our people, boosting the local economy while ensuring we continue to deliver critical services, ‘‘ he said.

Also being considered for the package is $1.3m towards reducing fees for businesses such as hairdressers, cafes, restaurants and property developers, a reduction in commercial and community rents of about $90,000, $7.5m on expanding the home insulation loan scheme while providing work for tradies, and making an extra $450,000 available for grassroots groups more quickly to allow them to support the most vulnerable.

The council has already approved an $8m rates relief package and worked with Venture Taranaki to provide financial support to small and medium businesses.

‘‘In six short weeks the world has changed, and we know many of our residents and businesses are hurting because of the massive economic downturn,’’ Holdom said.

The council itself is also expecting income to drop $5.4m, as a result of facility closures linked to the Covid-19 pandemic.

Meanwhile, NPDC has also submitted nearly half a billion dollars worth of shovel-ready projects for the Government to consider.

This includes $321m to upgrade the district’s Three Waters network, $108m on improving roads and bridges, $37m on an eco-friendly hydrogen-powered thermal dryer at the Wastewater Treatment Plant and $13.6m to continue work on the Taranaki Traverse walk.

Following a decision on the revised proposed yearly budget on Tuesday, it will go out for public consultation from May 12-26.

The final budget will be approved by the end of June.

The total proposed operating budget for the next year is about $175m.

We think this draft budget strikes a fair balance. Neil Holdom

New Plymouth Mayor