Rotorua Mayor Tania Tapsell discusses the draft annual plan
Widespread council spending cuts are being proposed in a bid to save almost $30 million and limit possible rates rises in Rotorua.
The possible cuts range from stopping investment in mountain biking trails and sports field improvements to closing the library on Sundays and removing inner-city flower beds and hanging baskets at Ngongotahā. Cuts are also proposed for the arts and creative communities.
Rotorua Lakes Council’s draft 2023-24 Annual Plan is now out for public consultation.
It expects the council’s debt to increase by $51m and it would have a $141m capital projects programme.
This includes key projects such as beginning work on Rotorua Museum’s restoration, completion of the city’s Aquatic Centre upgrade and stormwater enhancements.
The council has a debt limit of 250 per cent of its annual revenue, and the $51m of borrowing would mean the limit would sit at about 180 per cent.
Among its proposed ways of balancing the books is increasing costs for services and facilities in line with inflation, such as fees for the aquatic centre, parking, liquor licensing and dog registration.
In a message to the community in the draft plan, Rotorua Mayor Tania Tapsell says it is about addressing challenges faced by the community while balancing what is essential for it, with the need for “prudent financial management”.
Rotorua Mayor Tania Tapsell is inviting residents to give feedback on the draft Annual Plan. Photo / Andrew Warner
In her message, Tapsell says the council ensured it did not drive borrowings to unsustainable levels and proposed borrowing $51m instead of $77m, as previously planned.
She also says councils face hurdles managing increasing costs of construction, high inflation, labour shortages in a competitive market, and government reforms.
“We’re also very aware that our community is suffering from a cost of living and housing crisis.”
As such, the council is being proactive and refocusing its spending to be cost-effective.
“We invite you all to consider what we are proposing. Your feedback is important to ensure we have a well-balanced plan to see us through the tough year ahead and get Rotorua back on track.”
She says councillors provided a clear direction and set four key priorities for the next three years: housing, community, economy and infrastructure.
Councillors approved the draft plan to go out for consultation last week, and feedback can be given until May 12.
The cost-of-living crisis was a key theme of discussion at the meeting and it was explained that, if what the council had laid out in its long-term plan were to go ahead, a rates increase of 11.95 per cent would have been needed.
The capital projects programme was reduced from $162m.
To achieve this, council staff proposed a variety of spending cuts and fees increases. The consultation document outlines each point for the public to consider.
The almost $30m in proposed cuts includes saving $935,000 from pulling back city beautification services, such as the hanging baskets in Ngongotahā and the removal of garden beds in the inner city. Grass would also be left longer between mows.
The savings equated to a 0.87 per cent reduction in rates.
A cut of nearly $800,000 is suggested in core infrastructure spending, including by reducing kerbside sweeping, less maintenance on parks and less frequent replacement of signs, road marking, cycle stands and seats, removal of some hazards from roadsides, such as large trees, and reduction of some rural vegetation controls to zero.
The consultation document notes this could have negative impacts on amenities and lead to increased costs next year.
Alternative funding is suggested for cycleway and path enhancements – saving about $400,000 – by using government grants of $2.5m.
For the proposed changes to sports and recreation spending, there would be a 0.22 per cent rates drop. Costs would be cut by $3.25m.
This would affect planned improvements to sports fields as well as investment into new trails in the Whakarewarewa forest.
The document details a proposed pull-back on arts and creative communities funding of $728,000 and says the council sought to balance savings against the level of funding required to grow and sustain a vibrant arts and culture offering.
Proposed changes are that new public artwork funding would be lowered, as well as reducing capacity and resourcing in its facilities and venues for arts development, creative development and supporting the volunteer network.
Rotorua Lakes Council’s draft 2023-24 Annual Plan is now out for public consultation. Photos / File
It also proposed to cut library hours by closing on Sundays, saving $106,700.
About $1m would be saved by delaying an upgrade of the Sala St Cemetery Chapel, and more than $370,000 from stopping museum and waste education.
The Rotorua Museum educational services teach local history to about 6000 local students a year.
“It is the view of [the] council that education is the responsibility of the Ministry of Education and therefore [the] council proposes to relinquish its role in providing education services in the museum.”
The largest proposed cut, of more than $18.5m, is to economic development funding. This is the amount previously proposed for projects in the council’s Economic Recovery Fund. It says there were no suitable projects identified.
Another area where the council proposes cuts is a community well-being investment. It suggests saving $665,000.
“[The] council believe that within the overall district, there are already a number of viable community funders that can potentially better support community groups than [the] council,” the draft plan states.
Councillors came to the proposed 7.2 per cent rates increase through a series of public-excluded workshops and a meeting.
The full list of what was proposed, and what councillors voted on to form the consultation document, can be found on the council website.
