Western Bay of Plenty District Council defers decision on Long Term Plan adoption

Western Bay of Plenty mayor James Denyer says there is significant uncertainty around water reform and transportation following the general election. Photo / Alex Cairns

Western Bay of Plenty District Council has deferred the adoption of its Long Term Plan because of uncertainty around a national direction on core water and transportation services.

Councillors agreed unanimously today to defer the adoption of its core planning document by three months, providing time to factor in a number of potential Government-driven changes, post the October 14 general election.

The Long Term Plan sets the direction for all the activities and services the council provides, and how it will pay for these services over the next 10 years.

Western Bay of Plenty mayor James Denyer says this is a very deliberate decision as there is significant uncertainty and implications in affordable waters reform and transportation following the general election.

He says it is vital to have the most accurate and up-to-date information on these key areas, which have a major impact on the council’s financial and infrastructure strategies, as well as on rates affordability for the community.

“The Long Term Plan is our direction and social licence to operate and do the best for our community to address their priorities and preferences.

“We don’t want to have a kōrero with our community on a plan that is based on incorrect or incomplete information, or when things are likely to change. That would not be fair or transparent.

“Ultimately, we will ensure that we produce a Long Term Plan that provides for growth in the district, takes account of Government-driven changes, recognises the economic challenges, and balances the need for rates affordability against delivering what our communities expect.”

Updated every three years, the Long Term Plan is a requirement of the Local Government Act. The deferral means the council will miss the current deadline for adoption by the end of June 2024 — something a number of councils across New Zealand are also grappling with. It’s unclear whether provision for later Long Term Plan adoption will be forthcoming in legislative changes.

“We are not alone in this space, with most councils experiencing challenging situations with rates and rating implications due to dealing with so many external factors all at once — the current legislative environment, change in government, inflation and the cost of living,” explains James.

The current environment is also challenging because of significant inflation and increased debt servicing costs, which put more pressure on the council’s budget and ability to deliver core services and intergenerational projects.

Rates affordability is a key issue the council is facing, and the uncertainty on water management and transport would compromise the council’s decision-making.

“All of this makes it really challenging for councillors to make good trade-off decisions with so much uncertainty. We also need to ensure that we are not compromising core services and projects with longer-term benefits for short-term rates reductions.

“This extra bit of time will allow us to make better-informed decisions on our financial strategy, including debt levels and rates affordability considerations, and to present a more realistic and robust plan to our community for consultation in May and June 2024.”