The Whakatāne District Council has adopted the updated 2017/18 Annual Budget (Annual Plan) and approved a Rates Resolution which puts in place the general and targeted rates required to fund planned activities and services for the financial year starting on 1 July.

At an extraordinary meeting last week, Council elected members considered a revised budget which includes close to $1 million in costs related to flood and storm damage caused by the April cyclone events and the unbudgeted cost of supporting the Whakatāne District Recovery Project – Kia manawanui.  As a result, the total rates requirement will increase by 3.89 percent on the 2016/17 year.

Key features of the Annual Budget include:

• An increase in the proportion of total rates costs recovered through the Uniform Annual General Charge from 28 to 30 percent, to help offset the impact of the significant increases in capital value which affected some properties in last year’s District revaluation*
• Utilising part of the projected operating surplus in the Ports and Harbour activity to bring the average rate rise across the District within the 3.9 percent limit set out in the Council’s financial strategy
• Utilising a $50,000 Edgecumbe stormwater operating reserve surplus to reduce rates for all urban properties in the township
• Additional funding totalling $40,000 for Whakatāne/Ōhope escarpment tree management planning and monitoring
• $36,000 for Muriwai Drive-Mataatua Reserve walkway extension and beautification
• $100,000 to continue seismic assessments for Council-owned buildings

*Note that the District revaluation does not increase total rates revenue, but does affect how rates costs are apportioned across the District.

The budget provides for an operating surplus of approximately $0.8 million, which will be used to fund depreciation on Council-owned assets (creating reserve funds for asset renewals over a 30-year period). This ensures that the cost of renewals is spread over a longer period and provides the financial capacity to maintain and replace assets when required.

The Council also adopted a revised Fees and Charges Schedule for 2017/18, following deliberations on submissions from targeted key stakeholders. Changes include:

• Fees charged to implement the requirements of the Food Act
• Standardised hire fees for rural halls
• Reserve hire fee adjustments to comply with the Council’s Revenue and Finance Policy

The Fees and Charges Schedule will be available on this website before the end of this week.