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Unrealistic rate rise will harm city

Monday 10 March 2008, 7:00PM

By Jono Naylor

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PALMERSTON NORTH

The impact of reduced services and facilities on the city could severely impair the city's ability to progress if the Palmerston North City Council delivers an artificially low and unrealistic rate increase.


While Mayor Jono Naylor is keen to trim more off the 12 percent rate increase which is the positioning figure to be debated at Wednesday night’s City Council meeting, he says the Council and people of Palmerston North need to consider the long term impact of any services that get cut.


“I believe significant reduction in services could result in a city which people want to leave, rather than come to,” Jono Naylor explains.


“A decrease in population would then put further burden on ratepayers as the costs would be spread over fewer people, meaning that rates would increase per household.


“It’s important to me and to others I talk to that Palmerston North continues to be clean and attractive, a city people are passionate about and with quality core services and facilities.”


He says a recent allegation that some Councillors including himself are advocating a 15-20 percent is quite untrue. The three scenarios discussed by Councillors at a recent workshop were for a seven percent, a 12.3 percent and a 15 percent increase “and these were of an exploratory nature.”


“There is a real commitment by all Councillors to keep rate increases to the minimum possible without severely compromising services,” he says.


“With a 12 percent increase people will pay $3 a week more in their rates, with a seven percent they’ll pay $1.50 but with a slash and burn approach to many services.”


Jono Naylor points out that Councillors and Council staff have already found savings of $3.5 million including the deferment of both the Victoria Esplanade and Te Manawa developments and are continuing to explore other reductions.


Following Wednesday night’s Council meeting when the Draft Annual Plan is confirmed, the Council will then seek public feedback about the rate rise.


“This phase of consultation is very important to us. We want people to be well informed about the full impact of each option so they can then make submissions which will help us reach a final decision,” Jono Naylor says.


“As a Council we are keen to be guided by the public and I strongly encourage people to participate when the draft plan is released in the next couple of weeks.”


While Council finances have been hit by increasing oil prices and higher interest rates, the Mayor is determined to ensure that a realistic budget is set this year. He is committed in the future to finding better ways to do things.

“This year we want to set a realistic budget we can keep to. We want to have cost saving initiatives in place for the 2009/2010 financial but this takes time,” he says.


“In the meantime we have a large majority of Councillors who are considering the long term future of our city as well as participating fully in significant efforts to find ways to trim costs in the short term.”