The Whakatāne District Council’s 2015-25 Long Term Plan (LTP) deliberations process has seen a number of changes introduced, but the additional costs involved have been offset by a variety of funding measures, allowing a small reduction in the average rates increase across the district.

Mayor Tony Bonne says that as a result of submissions from the public and the Council executive, Councillors agreed to make provision for several new initiatives and change the timing proposed for other LTP projects.

“The LTP process is always a balancing act, because on one hand we want to see the District make progress and meet the community’s service expectations, and on the other, Councillors are very much aware that rates affordability is a key factor,” he says. “We believe that we have achieved that balance and that under the circumstances, to be able to fractionally reduce the average rates cost increase to 3.21 percent is an excellent outcome.”

LTP changes include:

• An increase in the Whakatāne Wharf repair project budget from $4.5 million to $6.0 million, with the work to be brought forward to 2017/18 (to be funded from Ports and Harbours renewal reserves and the Harbour fund – no rating impact)
• An increase in Airport operating costs of $25,000 a year (to be funded from General Rates)
• Upgrading of stormwater discharge structures in Ōhope, at a total cost of $300,000 over three years (half to be funded from existing stormwater budgets and half to be loan-funded from the transportation budget – debt servicing costs of $10,000 a year to be funded through the roading general rate)
• Providing $85,000 in 2015/16 to develop the concept and detailed site design for a world class ‘Heritage Hikoi’ to replace Whakatāne’s Culture and Heritage Trail ($10,000 to be funded from the Parks and Reserves budget, $50,000 from the Harbour fund and the balance to come from external funding contributions)
• $150,000 to be provided to upgrade the Mill Road water supply and an increase in the budget for planned wastewater reticulation from $800,000 to $1.235 million, to meet the demand for industrial development land (water supply upgrade to be 30%-funded through development contributions and the loan-funded balance to come from General Rates [43%] and the Whakatane Water Scheme; 30% of wastewater costs to be funded from development contributions and 70% loan-funded, with the costs recovered from the General Rate [57%] and wastewater targeted rate [43%])
• An increase in the budget for wastewater reticulation for Huna Road/Shaw Road to $845,000 (98% of the cost to be funded from development contributions and the balance loan-funded)
• $870,000 to be budgeted for the upgrade of the Wairaka Centennial Park (including external contributions of $270,000, with a start to the project contingent upon $200,000 in external/community funding being confirmed; the balance of the project cost to come from Parks and Reserves and the Harbour Fund)
• The provision of $115,000 to install UV water treatment at the Whakatāne Aquatic and Fitness Centre; $175,000 for customer service, entranceway access and evacuation improvements and an office and payment system upgrade; and $111,000 for progressive gym equipment upgrades from 2015/16 through to 2021 (a rating impact of up to $52,000, to be funded through the General Rate)
• A budget of $25,000 to be provided in 2015/16 for the development of an Eastern Bay of Plenty Cycle Trails Strategy (half of the cost to come from parks and reserves development contributions and half from the General Rate)
• $65,000 to be provided for the renewal of water supply flow monitoring equipment for the Whakatāne, Ōhope and Plains schemes (to be funded from Water depreciation reserves)
• The provision of $200,000 for the development of a green waste processing facility at Keepa Road ($150,000 to come from development contributions and $50,000 from subsidies
• Upgrading the Pikowai Camp Ground septic tank system at a cost of $65,000 (loan-funded, with servicing costs to be funded from general rates)
• Establishment of an Environment and Heritage Fund of $20,000 a year (a response to proposed District Plan submissions – to be funded from general rates)
• Providing $20,000 towards the $50,000 cost of opening the Edgecumbe College pool to the community during the summer months, the balance to come from community/external funder contributions
• Provision of $10,000 to support the annual Summer Arts Festival, with a further $10,000 of ‘in-kind’ support from staff (funded the existing events and operating budgets)

The Council also agreed to recommend that the Annual Grant Funding committee provide a grant of $10,000 a year, for the next three years, to Riding for the Disabled to support the development of a covered equestrian arena.

To offset the $336,500 total rating impact of the proposed changes, the Council approved a number of adjustments to project scheduling and the use of interest revenue from the proposed transfer of pensioner housing to a Community Housing Provider to cover debt-funding costs for the District Plan, Whakatāne Museum redevelopment and proposed War Memorial Hall redevelopment. The net effect of the proposed funding changes is to reduce the proposed average rate increase across the District in 2015/16 by 0.1 percent (from 3.22 to 3.21 percent). The changes also result in small reductions in the forecast increases for eight of the next nine years covered by the LTP.

Outcomes from the LTP submission hearings and deliberations have been included in the proposed LTP, which is undergoing an audit process before being reported back for Council adoption on 25 June.

A table indicating rating examples for 2015/16 is available below.

Indicative Rating Examples for 2015/16 - (PDF, 37.8 KB)