Rates to rise, but close to inflation
ROBERT STEVEN Rates are scheduled to rise, but rises will be within inflation, mayor David Trewavas says.
Councillors passed Taupo¯ District Council’s final LongTerm Plan [2018-2028] at a meeting on Tuesday.
The plan includes average rates increases of 3.44 per cent in the 2018/2019 financial year. Following this, average rates increases of 2.67 per cent, 2.59 per cent, 2.39 per cent, 2.5 per cent and 2.21 per cent are expected.
Trewavas said he was very happy with the plan.
‘‘There’s nothing over the finance strategy limit, so it’s basically in line with inflation,’’ he said.
Local government plans were a balancing act between meeting the wants and needs of communities, whilst keeping rates affordable and sustainable, he said.
‘‘The council has committed a lot of time to it and following meetings, public submissions and consultations, we’ve come up with a plan that reflects what our community wants, going forward,’’ he said.
‘‘We’ll still maintain levels of service and the look and the feel of the district will only be enhanced in the years to come.’’
Alan Menhennet, the council’s head of finance and strategy, said the Financial Strategy Limit the council has set is based on the Local Government Cost Index provided by central government. The LGCI index is similar to the Consumer Price Index, however, relates to the cost of local government expenses like pipes, earthworks, and operating expenditure like salaries.
While the 2018/2019 average rates increase [3.44 per cent] comes close to the Financial Strategy Limit of 3.5 per cent, the outlook improves in the nine years after that, Menhennet said.
‘‘We’re living within that limit for the next ten years, and it’s a very conservative financial strategy limit.
‘‘We’ve set the limit to 1.5 per cent above that Local Government Cost Index,’’ he said.
Trewavas said the council had also retained an AA credit rating from Standard and Poors.
‘‘They obviously see we’re tracking the right way and keeping our operating costs to a reasonable level, while maintaining services.’’
All councillors present voted to approve the Long-Term Plan. Cr Rosie Harvey and Cr John Williamson were absent.