Rates rise not as much as expected

Tararua residents will still be paying higher rates in the coming years but will pay slightly less than what had been originally forecast.

The Tararua District Council draft Long Term Plan which went out for consultation had a forecast increase of 4.24 per cent for the 2012/13 year. However, in the final Long Term Plan adopted by councillors this week, the average rate rise is 4.04 per cent for the coming year.

In his report to councillors, council’s chief financial officer Raj Suppiah, said the decrease in rates for Year 1 has come about after a surplus was found in the Gratuity reserves.

‘‘Our liability for staff was only $130,000. but we had $285,000 in the reserve. Council decided we could use

‘‘Council decided we could use this amount to offset any rates increases.’’

this amount to offset any rates increases coming out of the consultation and we have applied $158,000 equally to Year’s 1 and 2,’’ he said.

The final Long Term Plan adopted this week, contains several changes including the removal of council’s unpopular proposal to amalgamate services.

The Woodville library and service centre will be consolidated but the merger of the Dannevirke Information centre with the library will not go ahead. Neither will the amalgamation of services in Pahiatua and Eketahuna.

The annual grant for the three towns has been reinstated in the Long Term Plan with the Dannevirke Information Centre receiving a cut in funding over the next three years.

Councillors also agreed to provide $100,000 in the capital budget to build a transfer station on the existing landfill site in Pahiatua for solid waste.

Once it is built, the transfer station will be open for eight hours a week and operating costs are forecast to be met from existing budget provisions from the solid waste activity.

‘‘This means there will be a slight increase in Year 1 and and average increase of $10,000 in operating expenditure for the next nine years of the plan,’’ Mr Suppiah said.

The Long Term Plan is available to view at the council service centres.