MDC to slash rates increase
Mackenzie ratepayers could see their rate increase slashed in half, according to a report on the Annual Plan to be tabled at tomorrow’s District Council meeting.
‘‘Given the current economic climate following the impact of Covid-19, council has worked hard to reduce rates increases while maintaining existing levels of service and undertaking community and economic recovery actions, including acceleration of shovel ready projects,’’ the report says.
‘‘This has resulted in a rates rise of 4.48 per cent, lower than the forecast rates increase for
Year 3 of 8 per cent.’’
This has been achieved through application of forestry income, internal adjustments to overhead costs, and increased use of external debt to fund shovel ready projects, the report says.
‘‘While debt will increase to $10.5 million, exceeding the anticipated peak borrowing of $5.873m in 2020/21, it does not breach the Financial Strategy limits of debt level to rates income nor the financing costs limit,’’ it says.
‘‘Changes to debt relate to council’s prioritisation of shovel ready projects as part of its Covid19 Community and Economic Recovery Action Plan. These projects are intended to be debtfunded to spread costs in an equitable manner, while supporting the local economy.’’
The smaller proposed rate increase will lead to a $365,000 reduction in rates revenue, below the $400,000 benchmark that would make it a ‘‘significant’’ decision, according to council policy.
A full breakdown of variances and their significance can be found in the council agenda on its website, and will form the basis of council discussion as to whether consultation is required.
Every three years, the council is required to adopt a Long Term Plan (LTP) and in the intervening years an Annual Plan, which set out service levels and budgets for the year.
The council is only required to consult on the Annual Plan if it differs significantly from the corresponding year in the LTP, the last of which was adopted by council in 2018.
The report outlines a proposed timeline should consultation be pursued, which includes a consultation period July 8 to August 9, with any necessary hearings on August 11, then changes would be made in time for the plan to be adopted on August 20.
‘‘It should be noted that the above time frames would not allow for rates to be struck in time for the first quarter. Requiring the first quarter of 2020/21 to be set at a quarter of the 2019/20 rates,’’ the report says.
‘‘Alternatively, if council resolve that consultation is not required, and that the community will be engaged through other means, the draft Annual Plan will be brought to council for adoption on June 30, 2020.’’
The Annual Plan 2020/21 is required to be adopted by the council before June 30, 2020, and failing to adopt budgets for 2020/21 in time could impact on the council’s ability to continue to deliver services and projects to the communities of the Mackenzie.