HUTT CITY COUNCIL NEWS RELEASE

23 February 2017

Council propose changes to Financial Strategy to continue citywide rejuvenation

On 21 February Hutt City Council met to discuss proposed projects, strategies and budgets to be included the 2017/18 Draft Annual Plan.

Council will meet again on 14 March to sign off the Draft Annual Plan prior to seeking public feedback.

The Council’s proposing changes to the Financial Strategy, including debt levels, to continue to invest in the city’s growth.

Lower Hutt Mayor Ray Wallace explains, “Hutt City Council is committed to rejuvenating our city, we need long-term sustainable growth. With 87 per cent of submissions on last year’s Annual Plan supporting our approach for city-wide rejuvenation we feel comfortable in the direction we are heading.

“Some significant projects for our city will soon be open for community consultation, and we encourage our community to have their say on these.

“In 2015 Council opened the Walter Nash Centre in Taita, last year we launched Avalon Park and Riddiford Garden, and this year we will see the Huia Pool redevelopment completed and the Stokes Valley Hub opened.

“We are able to continue to invest in our city due to our relatively low debt level.  We remain committed to keeping rates increases to the lowest possible level - in the last two years we have enjoyed the lowest average rates increases in the region”.

Council’s Chief Executive Tony Stallinger says, “New projects proposed in this year’s Annual Plan would be funded by changes to Council’s Financial Strategy and not by an increase to rates.

“Council is proposing an increase to its debt cap to allow more room for long-term investment in Lower Hutt.  Council’s maximum debt level would be capped at no more than 150 per cent of Council’s annual income, with a further contingency in the result of significant natural disaster.”

The proposed change to our Financial Strategy would see Council retain its AA credit rating from Standard and Poors, an AA rating being the highest credit rating available to any Council in New Zealand.

The overall average increase for ratepayers forecast for the 2017/18 year is 2.3 per cent.  However, the average increase in residential rates will be higher at about 5.1 per cent.  In contrast, average business rates will decrease.

This change is mainly due to residential property values increasing more rapidly than business property values.

Figures released late in 2016 by Quotable Value Limited on behalf of Hutt City Council show average Lower Hutt residential property values increased by over 24 per cent from 2013 to 2016, while average commercial property values increased by less than 10 per cent over the same period.

The strongest levels of residential value growth have been in the suburbs of Petone, Korokoro and Taita, all seeing an average increase in value of 35 per cent, the other suburbs in Lower Hutt that experienced growth of over 30 per cent were Gracefield, Alicetown, and Moera.

Consultation with the community on this year’s proposed Annual Plan will include the option of temporarily freezing Council’s current rates differential transition. Proportionally general business rates are almost three times the amount of a residential property of the same value, Council is gradually reducing this differential.  Such a change in policy would see average rates changes reduce for residential properties from an average 5.1 per cent increase to an average 4.3 per cent increase.

The proposed Annual Plan consultation document will be available from Tuesday 28 March. This will be inserted into the Hutt News and will be available across all Council facilities and online at huttcity.govt.nz.

The community are encouraged to have their say; consultation closes on Friday 28 April.

ENDS

© Scoop Media