Whakatāne District Council’s draft Annual Plan 2023/24 will be considered at Thursday’s (30 March) full Council meeting with a recommended 9.5 percent average rates increase proposed for adoption.
The recommendation acknowledges the unavoidable impacts of inflation that were not anticipated when Council adopted its Long Term Plan in 2021, when a 6.93 percent rates increase was set for the first three years of the plan.
Thursday’s draft report outlines three financial levers available for Council to fund the 2023-24 work programme - increasing rates, decreasing levels of service, and borrowing. The preferred option seeks a balance between making things affordable for communities and navigating extraordinary inflationary pressures, while delivering a level of service which makes the District a fantastic place to live, work and play.
The recommended 9.5 percent average rates increase would require around $28.4 million borrowing, and some reprioritisation of capital expenditure to align with the work programme outlined in Council’s overarching Long Term Plan.
While inflationary impacts are evident for consumers, councils operate on a cost index that accounts for the types of materials required to build and maintain infrastructure. Roading is one example with the cost of materials, concrete, and utility costs inflating by 50 percent in some instances.
Council acknowledges the Annual Plan 2023/24 process has been particularly hard this year as it has sought to rescope and reprioritise its work programme to ensure the right things are still in place at the right time.
Members of the public can come along to the meeting — which is being held in the Mataatua Room at Bay of Plenty Regional Council — and listen in as Council discusses the item.
Following Council’s meeting, the draft budgets will be presented to each community board for consideration. Pending approvals, the final budget will be presented back to Council for approval at the 25 May Council meeting.