Commission chairwoman Anne Tolley. Photo / John Borren / Sun Media
Commission chairwoman Anne Tolley. Photo / John Borren / Sun Media
Tauranga City Council will not engage with the community on its annual plan for the first time ever.
Commissioners made the decision at a council meeting on Monday on the advice of staff.
Under the 2023-24 draft Annual Plan, residential ratepayers would face a median rates increase of 8.7 per cent, not including water charges, while the median commercial rates increase will be 17 per cent.
The reasons for not consulting on the annual plan were there were no “significant” changes between it and the 2021-31 Long-Term Plan and to reduce the staff time spent on it, according to a report by finance manager Kathryn Sharplin.
He “rejected” that there was no significant change between the Annual Plan and Long-Term Plan.
The Annual Plan looked to increase operational expenditure by 20 per cent and reduce capital expenditure by around 20 per cent - which was “significant”, Robson said.
The capital expenditure was around $25 million less in the draft Annual Plan than was originally indicated in the Long-Term Plan.
The operational costs were $76.2m higher in the draft than the LTP, driven “primarily” by inflation and higher interest rates, according to the report.
Robson said he would “happily” contribute toward the cost of consultation to see it take place.
“It’s [consultation] not going to cost a lot of money.”
The cost of consultation would have been between $20,000 - $40,000, according to Sharplin’s report.
Chief financial officer Paul Davidson told the commissioners: “The other thing to reflect on [aside from cost] is it’s a lot of staff time that’s taken through that period.”
Council staff were also working on the next Long-Term Plan, which was being brought forward for adoption before the commissioners’ exit in July 2024.
Consultation on the 2024-2034 Long-Term Plan would take place late next year.
Commissioner Stephen Selwood said the “community can be over-consulted”, which could happen if there was consultation on the annual plan and long-term plan in a “relatively short time”.
Commissioner Stephen Selwood. Photo / John Borren / Sun Media
“We run the risk of losing the engagement of the community given the volume of consultation.
“The rates increase is consistent with what we indicated in the Long-Term Plan and we should focus more on delivery than on consultation.”
Commissioner Shadrach Rolleston said the rates increase was “marginally above” what was anticipated in the Long-Term Plan.
“We’ve landed quite well in terms of what we’re trying to deliver over the next 12 months.”
Rolleston asked staff when the last time council did not consult on a plan was. Davidson replied this was the first time.
Commission chairwoman Anne Tolley said the Annual Plan was “business as usual” and the direction set in the Long-Term Plan was continuing.
“What has changed is inflation and interest rates,” she said.
“So what we are seeing now in front of us in the Annual Plan is an increase in our costs because of those two factors, not because we’ve added different things in.
“I’m reasonably confident that we don’t need to go out and re-consult on the Annual Plan based on the changes being largely inflation and interest.”
Commissioner Bill Wasley agreed: “I probably would be struggling with what we would be consulting on, which would seem to be … those increases that have been beyond our control.”
The finalised 2023-24 draft Annual Plan would likely be adopted in April or May next year.
