The rates increase for Invercargill and Bluff for the 2012/13 year is 4.08%, which is lower than the 4.47% increase projected in the city’s Draft Long Term Plan, Invercargill Mayor Tim Shadbolt said today.

Council at its meeting last night made decisions on public submissions to the Draft Long Term Plan, which will now go to Council’s Auditors before final adoption on 26 June.

Council received 200 written submissions and held one and a half days of hearing to listen to more than 40 verbal submissions.

Mr Shadbolt said the public were consulted on eight major issues which were:

1.       Rating Policy and the Rates Increase

Decision: 4.08% increase and removing all differentials, except for the rural farming differential which will be -20% and multi units (additional unit) will be a -25% differential.

2.       Financial Strategy

Decision: Adopt the Financial Strategy with the following key policies:

• Limits on rates collected as a maximum of 60% of total council revenue.
• A limit on rates increases of the Local Government Cost Index + 3%.
• A limit on borrowing of 15% of total assets.

3.       Development Contributions

Decision: Council signals its intent to pursue a Development Contribution Policy after it has done further homework and after it has done the necessary public consultation as a result of its homework. (Development Contributions will not be charged until this investigative and consultative process has been completed.)

4.       Building Control Fees

Decision: Introduction of a new building control fee structure based per square metre.

5.       New Fees and Charges

Decision: Introduction of the following new fees and charges:

• Animal Control – bark collars (small) $50 bond and $20 per week, (large) $70 bond and $30 per week.
• Passenger Transport – monthly pass (child) $63.50.
• Solid Waste – Hazardous Waste per tonne $74.50.
• Miscellaneous – Request for establishment of new rating area $7,187.50.

6.       The City Centre Revitalisation

Decision: Project is given $6.6 million over a five year period, which will be serviced through a loan paid for by the Business Development Rate, which is a rate on all commercial rating units.

7.       Urban Rejuvenation Project

Decision: Council has added a further $200,000 to the budget for the 2012/13 year.  This means that Council is budgeting $300,000 in the 2012/13 year and $140,000 per year for the following nine years.

8.       Rugby Park Stadium

Decision: Council will not take over ownership, nor provide financial assistance to the Southland Outdoor Stadium Trust.  Council recognises Rugby Park Stadium as an important community facility and intends to meet and work with all interested parties to find a solution to the cost of maintaining and operating Rugby Park Stadium.

Other decisions that have a financial impact:

• The proposed increase in the Regional Heritage Rate will be deferred to 2013/14.
• Allocation of $25,000 for implementation of the Child, Youth and Family Friendly Policy.
• Allocation of $5,000 to the Salvation Army for new premises.
• A grant of up to $50,000 to the Southland Cricket Association to assist with the outfield drainage at Queens Park.

Mr Shadbolt said another decision that had captured public interest was an undertaking to investigate a Keeping of Animals Bylaw to be consulted on during the second half of 2012.  This had come about because of the number of submissions related to the nuisance value caused by multiple cats being housed on a property.

After the Long Term Plan was formally adopted by Council at the end of June, every submitter would receive a response to their submission from Council.  This would happen in July, he said.