The average rates rise for the Whakatāne District for the 2014/15 year will be less than three percent. At an extraordinary meeting of the Whakatāne District Council on Tuesday, Councillors approved additional Annual Plan spending in some key areas, including stormwater improvements and increased unsealed road maintenance, but the increased costs were largely offset by a reduction in debt servicing costs.

Mayor Tony Bonne says the Annual Plan process has seen some particularly positive outcomes for the community. “Councillors considered the submissions to the draft plan very carefully, and while we were determined to keep the average rates rise as close as possible to the 2.91 percent increase originally proposed, there were clearly a number of areas where some additional spending was required,” he says. “That has largely been balanced by savings in other activities though, and I think we can be very satisfied with the overall outcome.”

Significant changes from the activity and project costs signalled in the draft Annual Plan include:

• A reduction in solid waste income, with a resulting negative rating impact of $230,000
• A $75,000 increase in roading, parks and reserves and corporate property contact costs
• An increase in unsealed road maintenance costs (to allow additional road metalling), with a net cost after subsidy funding of $76,500
• Additional interest costs of $34,700, as a result of stormwater works planned for 2015/16 in the Apanui catchment and Ōhope being undertaken ahead of schedule

Offsetting those factors were:

• A $52,000 reduction in the net cost of  liquor and gambling licencing activities
• A saving of more than $11,000 in interest costs arising from a change in the funding of the Ocean Road extension at Port Ōhope
• An expected $20,000 revenue increase for the collection of Regional Council rates
• A $10,000 saving in public convenience contract costs
• A $50,000 reduction in digitisation project costs
• A $50,000 saving in insurance costs
• An expected $73,000 saving in budgeted consultants costs
• A reduction of $40,000 for electricity and other contract costs for Council properties
• Updated borrowing analysis indicating a decrease in interest and principal repayment costs of $101,000

The Council will consider further minor adjustments based on the forecast rating position for this financial year when it adopts the 2014/15 Annual Plan on 26 June. However, it is anticipated that those adjustments will see the rate increase remain under three percent.

“Two key decisions related to the acceleration of planned stormwater projects for the Apanui catchment in Whakatāne and flood-prone areas in Ōhope,” Mayor Bonne adds. “The Easter storm showed that we are still vulnerable to flooding from extreme weather events, and Councillors were very supportive of a move to bring forward projects which will provide greater protection against future events.

“The increase in our road metalling budget also shows that the Council has listened to the concerns of residents living in our more remote rural areas, and the additional maintenance work this will allow should help deliver an improved level of service on our unsealed roads.”