Kaipara ratepayers could be facing a 7.4 per cent general rate increase.
On Wednesday, the Kaipara District Council approved the release of its draft annual plan, which proposes the general rate increase.
Last year Kaipara lifted its general rate by 1 per cent and ratepayers paid some of the lowest rates in the country.
The council at the time felt the 4 per cent indicated in the Long Term Plan would have had a detrimental effect on those already struggling to cope with the recession and the worst drought in 30 years.
In a report to Wednesday's extraordinary meeting Mayor Neil Tiller said in hindsight Kaipara's conservative approach and emphasis on rate minimisation had become detrimental to the future of the district.
In spite of the reprieve in rates, Kaipara now faced the largest number of rating arrears in its history, which coupled with the continued world-wide recession and urgent demands on an ageing infrastructure meant the council was unable to fund much needed improvements - other than by way of a loan.
Mr Tiller said the upgrading and replacement of infrastructure was essential to the district - the $2.4 million toilet upgrade was an example of urgent much-needed work. "Council will inevitably have to raise a loan to pay for them, currently as much as 20 per cent of rate income is used for servicing the $80 million the council has already borrowed. Another 50 to 60 per cent of the budget is allocated for roading, therefore little is left for anything else."
Provided payment is received a 1 per cent increase in Kaipara's general rates produces a revenue of $120,000.
New projects suggested in this year's plan include $60,000 on upgrading the council's website, $10,000 to enable free access to libraries, $50,000 to help battle the increasing number of fires and $250,000 for an organisational review - the figure to include implementation of any recommendations.
The review created a lengthy debate from which the public was excluded and resulted in councillors Jonathan Larsen and Andrew Wade voting against the draft plan being released in its current form.
Kaipara ratepayers can now submit to the draft annual plan between March 16 and April 15. A full version of the Draft Annual Plan 2011/12 is available on www.kaipara.govt.nz.
Kaipara facing 7 4pc rates rise
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