24 June 2015

Long-term plan aims to get council “back on course”

Rotorua Mayor Steve Chadwick says the council’s new 2015-2025 Long-term Plan will be about facing reality and getting the council back on course.

Rotorua Lakes Council this week concluded a four day council meeting with a series of decisions to be incorporated into the council’s new long-term plan. The decisions are subject to formal adoption of the plan at a meeting scheduled for 30 June.

The council has confirmed that it intends proceeding with a previously signalled one-off seven per cent increase in the total amount of rates to be collected in the coming financial year.

The increase has been deemed necessary to get the council back into a balanced budget position, and to enable much-needed public infrastructure upgrades and renewals to be undertaken.

The one-off increase in 2015/16 would mean future rates increases could then be held closer to annual inflation levels in subsequent years.

In approving the seven per cent average rates increase, the council undertook to “smooth” its impact across different ratepayer categories, and in particular to reduce substantial rates jumps that some farming ratepayers would have been subject to.

Under changes made this week, average rates increases in the 2015/16 year across key ratepayer categories are now estimated to be: Business category 8%, Residential 8%, Farming 11% and Residential Rural 8%.

However, for individual farm properties experiencing rates rises of more than $1000, the council has agreed to cap increases to the same per centage level as their most recent capital value increase.

The new rates levels will apply for the year beginning 1 July 2015, with the first quarterly rates instalment due for payment by 20 August.

Mayor Steve Chadwick said decision-making for the long-term plan had been the most challenging and complex process faced by Rotorua’s council for many years.

“Rates rises for the coming year won’t be an easy ask for anyone in our community. But the unrealistic mentality of recent years when rates increases were kept as low as 0.9%, while politically expedient, put Council into a financially unsustainable position.

“We’ve acknowledged that we have to take a short-term hit. Our future prosperity depends on that.

“When elected, this council agreed that debt, efficiency and effectiveness were our major priorities. That hasn’t changed and, after a period of time of little or no major work on our assets, we’re now at a point where we have a lot of capital work that’s needed to protect those assets.

“The new long-term plan will provide an environment that will enable the investment we need to secure Rotorua’s future,” said Mrs Chadwick.

Other decisions taken at the four day council meeting to develop the long-term plan include, in summary only:

Rural road seals

Doubling previously signalled funding for rural road seal extensions across the district. An allocation of $600,000 per annum is now to be included in the long-term plan.

Waste Strategy:

Development of a new waste management and minimisation plan. The plan would look at the possibility of introducing fortnightly kerbside wheelie bin collections of household rubbish and recycling, and the phasing out of rubbish bags.

Wastewater:

Agreement to proceed with a programme to identify sustainable alternatives to disposal of treated urban wastewater which is currently sprayed in Whakarewarewa forest. This is to be implemented by 2019. The council also agreed to develop new wastewater disposal solutions for communities in Rotoiti/Rotoma, Rotoehu, Tarawera and Mamaku.

Community infrastructure:

A programme of development, strengthening, upgrading and renewals for a number of key community assets, including essential work on Kuirau Park, i-SITE building, Library building, Rotorua Museum, Sir Howard Morrison Performing Arts Centre and the council Civic Centre.

Community House demolition:

Demolition of Community House as a result of unacceptably high costs identified for maintenance and renewals. The decision is combined with a package of financial assistance to help community groups, which currently rent space in Community House, to secure alternative premises.

Child health & Library Hub:

Development of a combined one-stop library and child health hub, and family-friendly plaza, based on the library building and surrounds. The partnership with Lakes District Health Board will also allow much-needed upgrade work to be carried out on the library building.

Inner City Revitalisation :

Adoption of a detailed Inner City Revitalisation Strategy, and funding allocation for upgrade and revitalisation work in the inner city over the coming years.

The draft long-term plan document is now being compiled by council staff, and prepared for finalisation and adoption at a 30 June council meeting. Once formally adopted, the new ten-year plan will come into effect on 1 July, the start of the 2015/16 financial year.

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