A series of draft Annual Plan recommendations adopted by the Whakatāne District Council’s Policy Committee on Wednesday mean average rates across the district will rise by less than 3 percent for the 2014/15 financial year.

A report received by the committee detailed the reasons for any significant variances from the activities and estimated costs set out for the year in the Council’s Long Term Plan 2012-22 (LTP). Mayor Tony Bonne says increased costs and a number of new initiatives could have seen the projected average rate increase rise above 4 percent, but through the combined efforts of Councillors and staff, the actual increase was likely to be very close to the figure estimated when the LTP was adopted in June 2012.

“Rates affordability is one of our key performance measures, and Councillors were adamant that the average increase must be less than 3 percent,” he says. “Our financial strategy limits the average rates increase for the year to 4.5 percent, which is the Local Government Cost Index estimate, plus 2 percent, so it’s very pleasing that we will be both maintaining our levels of service and keeping rates costs well within that range.”

Mr Bonne says there will be good news for Matatā ratepayers in particular, with recommendations being adopted to fully repay more than $111,000 of historical lagoon desilting costs from general rate reserve funds and pay a $20,000 contribution to the town’s stormwater operating rate from general rates. “That’s likely to equate to a saving of about $180 for every Matatā ratepayer, which will go some way towards addressing the ongoing affordability issues caused by the disaster recovery works in the town since 2005.”

Other significant decisions taken to reduce the impacts on general or targeted rates in 2014/15 include:

• Repaying a refuse collection operating reserve balance deficit of $181,000 from general rates reserves.
• Reducing the annual contribution to the roading storm damage reserve by $97,000 (to maintain the $1 million cap set for the fund).
• Including a provision for $440,000 (creating a rating impact of $5,000 a year for the next 10 years) in the draft Annual Plan as the Council’s contribution towards the construction of a community/school gymnasium and hall facility at the new Murupara Area School, including demolition of the existing town hall and landscaping work. The Council will work with iwi and the community to secure external funding for one-third of the proposed contribution, with other funding support coming from asset renewal reserves, operational savings and loan funding.
• Adding $40,000 to the existing $50,000 budget to allow a needs assessment and feasibility study to be undertaken – a preliminary step towards the possible redevelopment of the Whakatāne War Memorial Hall as a flexible-use sports, cultural and conference venue.
• Providing for up to $250,000 to be expended from the Harbour Fund each year for harbour entrance dredging work, if required.

The committee also approved a review of the Council’s seal extension policy, to allow resident-funded road sealing works to be undertaken (with costs recovered via a targeted rate) where residents living on unsealed roads wish to proceed with a sealing project.