Strong performance means smaller rate rise

Tasman ratepayers are set to benefit from the Tasman District Council’s sustained focus on debt reduction and reduced spending, with a lower than predicted rate increase next year.

The Council’s Long Term Plan (LTP) 2015-2025 had signalled an overall rate rise of 2.96 per cent next year. While the exact details are still being worked out, the Council is expecting rate rises across the District to be significantly lower than that.

Tasman Mayor Richard Kempthorne said the Council had been working hard to deliver value for ratepayers.

“Before the development of the Long Term Plan we received a very clear message from the community that they wanted us to reduce debt and focus on prudent financial management. We worked really hard to deliver that and we were already forecasting debt and rate levels that were a big improvement on the previous LTP. To now be looking at an even better outcome for ratepayers than we expected is fantastic.”

The Council’s debt for the 2014-15 financial year was $28 million lower than projected. It achieved an operating surplus of $8.6 million. That means it needs to raise less revenue from rates than it expected when the LTP was written.

The draft rates income increase for 2016 will be released between February and March next year.

The Council’s first quarterly financial report for the 2015-16 financial year (covering the three months to 30 September 2015) shows it is continuing to achieve strong results.

The quarterly results show the Council’s net debt for 2015-16 is forecast to be $14 million lower than predicted in the LTP, and the year-end operating surplus is on track to be $2.95 million higher than budgeted.

ENDS

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