Proposed rates increase less than forecast

It is proposed there will be only a slight general rates increase for Environment Bay of Plenty ratepayers from July this year, much less than forecast last year.

In adopting the draft Annual Plan, Environment Bay of Plenty Chairman John Cronin said the council had worked hard to reduce the increase at just 3.8 percent while continuing to provide the level of services the community has said it wants.

Chairman Cronin said council expected to spend about $79.6 million compared to $83.1 million forecast in the Ten Year Plan 2009-2019 approved in June last year. One third of this will be funded from investment income; one third from government funding, user fees and charges and other revenue. This means just one third will be funded from general and targeted rates on our ratepayers.

Environment Bay of Plenty’s proposed rates and work programmes for the year are contained in the council’s draft Annual Plan 2010-2011 which will be available for public submissions from 26 March until 28 April 2010.

Chairman Cronin encouraged ratepayers to look at the proposed activity work programmes for the year and how they will be funded.

“It’s business as usual,” he said. “We’re continuing to work to the programme developed last year during the Ten Year Plan process.

“The draft Annual Plan details the work we want to complete over the next financial year – what we think are realistic targets at reasonable costs.

“There’s very little that’s new or changed – we’re focusing on completing our existing programmes and consolidating the good work from previous years,” he said.

The work programme for 2010/2011 was set out as Year Two of the Ten Year Plan 2009/2010.

Proposed changes to the programme include:
• additional resourcing for an integrated management approach for Tauranga Harbour
• no dairy discharge rate for Rotorua farmers
• a new $2.1 million grant for the Maketu/Little Waihi sewerage scheme coming from investment reserves
• funding the $1.9 million grant for the Lake Rotoiti Sewerage Scheme from investment reserves instead of general funds and targeted rates
• providing a grant to the Animal Health Board for bovine tuberculosis control
• retaining the current number of accessible buses in Rotorua and no increase in services for Tauranga
• bringing to an end the HazMobile collections due to a reduced need for the service
• not running the first year of the Regional Infrastructure Fund, instead directly funding the two sewerage schemes.

The draft Plan proposes targeted rates for providing passenger transport, helping to reduce air quality problems in Rotorua, restoring and protecting Rotorua lakes (particularly focusing on four priority lakes - Rotorua, Rotoiti, Rotoehu and Okareka) and providing and maintaining flood management within flood-prone districts.

The council is also consulting on proposed changes to both resource consent charges (Resource Management Act section 36 Charges Policy) and Port Charges, both of which are being updated to reflect inflation.

The draft Annual Plan will be available from 26 March from Environment Bay of Plenty offices, via the website www.envbop.govt.nz or by phoning 0800 ENVBOP (368 267). Submissions close on 28 April 2010.

Examples of 2010/11 rate costs based on average land value at different locations within our region are:

Kawerau
Average property land value $43,000
Uniform annual general charge $6157
General rate $8.63
2010/11 total rate $70.20
Increase from previous year $2.71
Average property total rate per week $1.35

Opotiki
Average property land value $230,000
Uniform annual general charge $61.57
General rate $45.54
2010/11 total rate $10711
Increase from previous year $2.07
Average property total rate per week $2.06

Rotorua
Average property land value $148,000
Uniform annual general charge $61.57
General rate $27.04
Targeted rate $178.35
2010/11 total rate $266.95
Increase from previous year $29.77
Average property total rate per week $5.13

Taupo (part)
Average property land value $148,000
Uniform annual general charge $61.57
General rate $29.97
2010/11 total rate $91.54
Increase from previous year $5.63
Average property total rate per week $1.76

Tauranga
Average property land value $205,000
Uniform annual general charge $61.57
General rate $41.15
Targeted rate $61.12
2010/11 total rate $163.84
Increase from previous year $10.91
Average property total rate per week $3.15

Western Bay of Plenty
Average property land value $446,000
Uniform annual general charge $61.57
General rate $82.09
2010/11 total rate $143.66
Increase from previous year $3.41
Average property total rate per week $2.77

Whakatane
Average property land value $128,000
Uniform annual general charge $61.57
General rate $23.81
2010/11 total rate $85.38
Increase from previous year $1.69
Average property total rate per week $1.64

GST is currently 12.5 percent but there is a high likelihood that during the 2010/2011 year this will rise. In the rates table provided in this media release, rates are shown inclusive of GST at 12.5 percent. This is to give an idea of the full cost to ratepayers on the current taxation basis. By the time the draft Annual Plan is adopted in June 2010 the GST level should be confirmed and any GST inclusive figures will be updated to reflect this.

ENDS

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