Where have we failed?
It’s true that a lot of the shortfall in our current budget has been caused by unforeseen circumstances, such as the Covid pandemic and impacts from extreme weather events.
Construction costs have also skyrocketed, along with the minimum wage increases. Since 2017 the minimum wage has increased by 47 per cent from $15.75 to $23.15 (living wage $26.00). I’m not saying that’s a bad thing, just another factor in the increased cost of construction. Fuel prices have risen by 50 per cent since 2017. Our insurance premiums have doubled since 2017.
The saying that “it is never cheaper to construct something than it was yesterday”, is so true, especially when you look at the above figures, and all our councils in New Zealand have not been able to match costs with income for a long time.
It’s also important to recognise that designing and planning for the growth of our region is vitally important, and we can’t afford to sit still.
For many years, our community has heard me talk about how Whangārei and Northland are growing, and we need to be ready for that growth. In the past 20 years you have seen enormous growth happening around our district and across the entire region. Ruakākā, Tikipunga, Maunu and Kamo West are all suburbs that have grown, and having the right infrastructure in place is needed to keep this growth sustainable.
While I know the 17.2 per cent general rates increase is hard to swallow, we all know that we cannot keep living outside our means. We need to keep up with construction costs and ensure assets and current infrastructure are maintained correctly, and we need to have an achievable plan for future growth.
Within this plan we are asking our community three questions:
- Do we become a shareholder of Northland Inc, alongside our other Northland councils (as central government have asked to have that unified voice);
- Do we continue to monitor the freedom camping sites (as central government have not guaranteed funding as of yet);
- Do we create a council controlled trading organisation (CCTO) for our commercial properties, as a way of generating income for the district?
Our long-term plan 2024-34 is open for consultation until April 25.
Please have a look online at www.wdc.govt.nz/HaveYourSay, or come in to our council building at 9 Rust Avenue Whangārei or Takutai Place in Ruakākā and collect a printed copy. We’re happy to answer your questions and explain the document in more detail.