Council proposes to limit rates increase to 2.33%

Marlborough District Council Media Statement

Council proposes to limit rates increase to 2.33%

Marlborough District Councillors today approved a draft annual budget which maintains existing projects and levels of service while keeping a brake on new spending.

The draft Budget 2017-18 proposes an increase in total rates and charges levied of 2.33% which, if approved, would be the second lowest increase the district has seen in the last decade.

Marlborough Mayor John Leggett says there has been a very firm line taken and he doesn’t want to see a deluge of requests for further spending when public submissions are called in early April.

“We will be looking for feedback and it may be that a few proposals can be addressed by Council committees through existing budgets or perhaps from existing Funds or Reserves. But most submitters should expect to be referred to next year’s Long Term Plan process if they are looking for project funding,” he said.

Councillors were told that, around the country, most councils were looking at rate increases of one to six per cent.

“I’m comfortable that we’ve be able to come out with a pretty reasonable figure while also keeping Marlborough moving ahead,” said Mr Leggett.

The Mayor said Marlborough’s spending programme had very few new measures but continued the staging of projects in roading, stormwater and community facilities that were already underway.

But while most of the draft Budget concentrated on core infrastructure projects, he said it was important to note that some adjustment of budgets was necessary given the nationwide movement in project costs.

“Earthquakes and housing demand has had an effect on labour and material costs. That’s now being felt in project costs everywhere including Marlborough and some of our project estimates are now too low.”

That is well below the longer term projections signalled by the Council’s longer-range planning documents, he said. The Long Term Plan had indicated the likely increase would be 5.26%.

Amongst a list of additional measures which councillors today agreed could go into the draft Budget were two significant new initiatives each with an allocation of approximately $2M; the commencement of a plan to digitise Council’s resource consenting processes and a commitment to help fund, with central government, the expansion of rural broadband, subject to detailed feasibility and risk analysis. Neither project would be funded by rates.

The list of additions to the draft Budget 2017-18:

ProjectTotal $ AmountIndicative Rating Impact 2017-18Picton Sewerage upgrades$800,000$17,500Stormwater Town Branch Drain acceleration$520,000$22,500Barge forestry loading site additional cost$300,000$13,000Blue Gums landfill- Pyrolysis Plant$450,000-Waste Facilities extension of operating hours$34,000$34,000Reserves and Amenities Resourcing$100,000$35,000Freedom Camping Patrols$30,000$30,000Pollard Park event Area development$83,000-Extension of Saturday Library hours$34,412$34,412Marlborough E/Plan Independent Commissioners$350,000-Fencing of Swimming Pool inspections$96,000$96,000Marine Biosecurity resource$82,800$82,800Land Management resourcing$100,000$100,000Resource Consent System replacement$1,960,000-Rural Broadband$2,650,000-Weather Station - Picton$26,500$5,500Economic Development funding review$236,500-$118,250Water Consent Monitoring Fee$340,000-$340,000Moorings Monitoring Fee$170,000-$170,000TOTALS$8,363,212-$157,538

“Councillors will listen to submissions from the wider public before finalising the budget which in turn will determine how much rates will move. The challenge for councillors will be to hold the line on spending in the face of pressure from people with new initiatives and that can be difficult,” said the Mayor.

A consultation document setting out the contents of the draft Budget 2017-18 will be published on

Thursday 6 April with submissions accepted from the public up until Wednesday 10 May. After hearing submissions, councillors finalise the budget and set rates on Thursday 29 June with the new rates coming into effect on 1 July 2017.

JOHN LEGGETT

MAYOR

Record No: 1738905