A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.
A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.
Opinion
The first full council meeting of the year is being held today, with councillors regathering — no doubt having received lots of helpful advice over the summer break — to consider the Three-Year Plan 2024-2027 draft estimates and branding as well as the Tairāwhiti Moves plan that was reported onin Tuesday’s Herald.
While the council’s long-term active transport plans have surprised some, coming at a time of immense pressure for cyclone recovery and infrastructure upgrades amid financial constraints, they do signal a direction of travel that aligns with its spatial plan, Tairāwhiti 2050. Staff could be told to put it on the back-burner, but more likely it will be adopted after stern words from some councillors about the need to focus on priorities.
Of immediate interest to ratepayers, estimated average rates rises have been refined since it was revealed late last year that the council was looking at maximum annual hikes of 11.4 percent over this special three-year plan focused on cyclone recovery.
The report for today’s meeting estimates the total increases in rates income will be 11.3 percent in year one, 9.8 percent in year two and 8.4 percent in year three. This involves “business as usual” average rates rises of 7.8 percent each year, and a “recovery rate” of 3.5 percent in year one, 2.0 percent in year two and 0.6 percent in year three. The recovery rate in 2025 will involve an additional charge of $82 for 95 percent of ratepayers, with the forestry and pastoral sectors facing an additional targeted woody debris rate.
Prior to this the report outlined the challenges, with “circumstances significantly altered” since it adopted its latest 10-year plan in 2021: these include increased workload to address damage caused by Cyclone Gabrielle; the need to ensure repair and restoration work contributes to making the region more resilient; and rising interest rates and inflation.
“These higher costs, as well as the impact of not receiving a dividend for three years from our Council Controlled Trading Organisation, mean that we no longer have the ability to hold the rising costs.” (Yes, that suggests the council has agreed not to receive a dividend from Gisborne Holdings Ltd this year and next year, after forgoing $2.5m of its declared 2023 dividend due to cyclone impacts on Tauwhareparae Farms.)
The report says provisions for rates remissions have been increased, to directly address those who are facing significant hardship “without overly burdening future generations”.
Additionally, most of the recovery response costs were being spread across the district, rather than applying this based on capital values.
