Draft financial forecasts prepared as part of the Whakatāne District Council’s 2016/17 Annual Plan process point to a significantly lower average rates increase than had been anticipated in the 2015-25 Long Term Plan.

Reporting to the Council last week, Finance General Manager Helen Barnes said the forecast budgets for the 2016/17 year were in keeping with the Long Term Plan (LTP), but cautioned that a number of matters still under consideration could have an impact on the Annual Plan. These included solid waste management contracts currently out for tender, potential Plains Water Scheme projects and the costs associated with progressing an integrated wastewater strategy for Matatā and Edgecumbe.

"Provided those items do not have an adverse impact on budgets, we are forecasting an average rates increase across the District of 2.96 percent, which compares favourably with the indicative LTP increase for the year of 3.84 percent," Ms Barnes said.

Mayor Tony Bonne said Council elected members were determined to keep the average rates increase to less than 3 percent and described the forecast as a significant step forward. "While we have to provide funding for the major projects and initiatives needed to maintain the District's growth momentum and infrastructure and service delivery, we recognise that affordability will always be a key factor for our community," he said. "I believe this Annual Plan will deliver an effective balance which will maintain our progress while keeping rates costs to an absolute minimum."

Indicative rates calculations for individual community sectors vary, largely depending on the impact of targeted rates for specific services or activities and the uniform annual general charge levied on all rateable properties. Outcomes ranged from small decreases for Matatā high value properties and Te Teko to a 4.47 percent increase for average value properties in Edgecumbe. Full details of indicative rates will be available once the financial forecasts are finalised in early-2016.