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Home / Rotorua Daily Post

Rotorua Lakes Council adopts Annual Plan, including rates rises

Samantha Olley
By Samantha Olley
Rotorua Daily Post·
28 Jun, 2019 04:31 AM4 mins to read

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Rotorua Lakes Council chief financial officer Thomas Colle. Photo / File

Rotorua Lakes Council chief financial officer Thomas Colle. Photo / File

The Rotorua Lakes Council has adopted its Annual Plan for 2019/2020.

Mayor Steve Chadwick and six councillors voted in favour, but councillors Raj Kumar, Peter Bentley and Mark Gould voted against the adoption.

Councillors Raj Kumar (left) and Peter Bentley. Photo / File
Councillors Raj Kumar (left) and Peter Bentley. Photo / File

Councillor Trevor Maxwell was excused from the meeting.

The average rates rise is slightly less than what was proposed in the 2018-2028 Long-term Plan but predicted capital project spending and borrowing are higher.

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At a full council meeting yesterday the council's chief financial officer Thomas Colle outlined just what those rates rises would be.

The regional council has also set its rates for the year to come.

The plan includes an average rates increase across the district of 4.9 per cent, down on 5.1 per cent proposed in the 2018-2028 Long-term Plan.

However, both predicted capital project spending and borrowing are higher.

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The Long-term Plan estimated the council would spend $76.2 million on capital projects and borrow $25.6m, but the annual plan estimated $89.9m would be spent on capital projects and $41.4m on borrowing due to project timing changes.

Chief financial officer Thomas Colle said the Rotorua Museum, Whakarewarewa, Lakefront and Sir Howard Morrison Centre projects were together costing about $100m.

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"Of that external parties are contributing approximately 55 to 57 per cent of that."

Councillor Merepeka Raukawa-Tait said, "Partners don't come to the fore if they don't believe there's a vision to support."

She said the funding was thanks to the mayor and councillors "doing the rounds" with their contacts.

Rotorua mayor Steve Chadwick. Photo / File
Rotorua mayor Steve Chadwick. Photo / File

"Somebody has got to go out there and hustle ... Long may that continue, because should that disappear, my God then the ratepayers will have something to worry about in the future."

Councillor Peter Bentley said he could not agree with the plan at all.

"I don't see any aim at repaying debt."

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Councillor Mark Gould said the plan did not treat the Rotorua Museum repairs with enough urgency.

Rotorua Museum in 2016 when it was closed indefinitely. Photo / File
Rotorua Museum in 2016 when it was closed indefinitely. Photo / File

However, deputy mayor Dave Donaldson said this was not the case "whatsoever".

"The process is all ready to go and it just needs the final piece of the funding puzzle sorted, and the work on that is ongoing. I am absolutely confident, as I know you are Your Worship, that we will get there."

Rates increases

The councillors voted unanimously in support of an average 4.9 per cent rates increase per household, equating to $2.50 a week.

Chief financial officer Thomas Colle said about 50 per cent of the funds from the increase would go towards the new East Rotoiti Rotomā Sewerage Scheme operational costs.

He said because lake water quality was important to all residents, "we did have to spread that across the wider district".

He said, "The pressure that goes on the organisation to try to keep increases as low as possible is very real."

Councillor Merepeka Raukawa-Tait said formerly there was a "fixation in council here to keep the rates low".

"We deferred repairs and maintenance and that has come home to bite us in the bum now."

Deputy mayor Dave Donaldson reminded the councillors that unlike Auckland, there was not a separate charge for water in Rotorua.

Rotorua deputy mayor Dave Donaldson. Photo / File
Rotorua deputy mayor Dave Donaldson. Photo / File

The annual plan was the first councillor Rob Kent had supported in six years.

"Staff, having been thrown the challenge to actually reduce the rates below the level forecast in the Long-term Plan, that they've actually achieved it. For that I congratulate them."

Gould said the farming community was not happy with their average rates increase of 4.8 per cent.

"I believe a lot of farmers would accept a 2 to 3 per cent increase."

Rotorua councillor Mark Gould photographed in 2016. Photo / File
Rotorua councillor Mark Gould photographed in 2016. Photo / File

Average Rotorua Lakes Council rates increases
Business 4.8 per cent
Farming 4.8 per cent
Residential Rural 4.5 per cent
Residential Urban 5 per cent

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