Strenuous Cost Cutting Reflected In 6.6% Rate Rise

After over 160 submissions, Tararua District Council has cut the proposed rates rises over the first three years by nearly a third.

Draft increases of 8.98% (2009/10), 12.35% (2010/11) and 9.02% (2011/12) forecast have now been replaced by 6.62%, 6.88% and 6.48% respectively. Roading, Solid Waste, Sewerage and Water remain the main drivers for rates increases over the next ten years.

Despite the council’s best efforts, however the news is still cold comfort for a number of ratepayers, with a large number of winners and losers from last year’s revaluation. Dairy property land values increased, many by 50%, and many in the small urban towns by 200% to 300%. Corporate services manager Peter Wimsett notes that the council gained no financial benefits from revaluation with its large increases and decreases and had “few tools to cope with such a degree of change which is fundamentally driven by property values.”

Mr Wimsett said this is resulting in large decreases to many sheep and beef farms, large increases to dairy properties and a catch up by smaller towns to the rates being paid by the bigger towns.

At $549 the final Uniform Annual General Charge is reduced from $565 and is 29% of the total rates.
The council has also accessed $400,000 from its depreciation reserves to meet loan repayments.

Mayor Maureen Reynolds said that managing this year’s strategic planning process had been “particularly difficult”.

“With the work required to provide bulk water storage and improve waste water disposal and the ballooning cost of recycling, not to mention the planning for solid waste into the future, plus keeping rates at an acceptable level, council has had to be particularly creative in managing these costs,” she said. Council appreciates the announcement of the Ministry of Health to defer the mandatory Drinking Water Standards upgrades for three years whilst costs and benefits are looked into.

Key changes include deferring planned upgrades to Eketahuna and Pahiatua town centres to 2014/15 and 2018/19 respectively. Meanwhile the Woodville town centre requires the resolution of a funding issue before it proceeds.

Swimming pool replacements in Eketahuna and Pahiatua have been deferred for two years to 2012/13 and 2013/14 respectively.

Water and wastewater remain a priority although the Dannevirke water treatment upgrade has been shifted out two years to 2012/13.

Ratepayer requests to abandon proposals to truck solid waste out of the district in favour of seeking extended landfill consents from the regional council have also found favour. There is a commitment to review the high cost of recycling activities.

Road maintenance – sealed pavements, traffic services and bridge structures – has been shaved by $380,000 ($152,000 local share) annually for the first three years of the plan.

A proposal to establish an in house specialist team for parks and reserves is now on hold pending discussions with the contractors.

The Long Term Council Community Plan is available on Council’s website, www.tararuadc.govt.nz