Council to consider $250,000 rates reduction from road maintenance contract

Council will debate a recommendation to reduce the amount of rates collected for roading by $250,000 for 2012/13 at a meeting on 29 May 2012.

Council recently awarded its road maintenance contract to South Roads Limited for a period of three years. The winning tender provides the opportunity for $1,000,000 of cost reductions over the three years.

Council’s roading budget is composed of ratepayer funding matched by a government contribution. The projected $1,000,000 saving is made up of $430,000 rates and $550,000 New Zealand Transport Agency (NZTA) funding. Of this, Council estimates $250,000 in rates savings are possible next year.

Council will debate the recommendation at its meeting held 29 May 2012 once submissions have been considered on the draft 2012-22 long term plan.