Rotorua rates debate: Peter Guerin

Rotorua District Council chief executive Peter Guerin responds to Don Parkes' opinion piece questioning local council rates
"Lies, damned lies, and statistics," the old expression warns. I would add a caution about using the out-of-date and questionable figures published some time back by a Sunday newspaper. A number of councils have rightly challenged the assumptions used in the article referred to, pointing out some of the figures failed to compare apples with apples.
For example, urban residential rates in Rotorua District include the provision of a safe water supply and regular kerbside refuse collections whereas some other councils don't include these within their rates, but instead charge extra for those services on top of rates.
This can distort the true picture if rates are compared between councils without taking such factors into account.
What is true, however, is that Rotorua District Council is one of the few councils over the last three years that has managed to keep rates increases well under prevailing levels of inflation. More importantly, we have done so without cutting the services we provide to our community. This has been a big ask but I'm proud that our staff have continued to successfully meet that challenge head-on.
It's interesting to compare RDC's rates increase for the current financial year with those signalled by other councils. Let's look at a couple of comparisons. Rotorua is the North Island's main provincial tourist destination and Queenstown is our equivalent in the South Island. Queenstown residents' rates are increasing by 10 per cent this year.
Our neighbouring city of Tauranga is increasing average household rates by 10.4 per cent. But in Rotorua district the average increase is 3.1 per cent and could have been as low as around 2 per cent if the effects of the Canterbury earthquakes hadn't handed us a massive jump in insurance premiums, to around a million dollars.
The issue of debt is always a topical one. The RDC, like most councils, believes that borrowing to fund major infrastructure developments that will last many generations is the fairest way to go as it means tomorrow's ratepayers who also use these facilities and services can share the cost with the ratepayers of today.
Our council has a clear and conservative policy that limits the level of debt we have at any time. Our current status is well below the maximum set in the policy and is backed by around a billion dollars in assets.
Mr Parkes refers to RDC's debt level of $170 million (in 2013/14) but fails to mention that this is reducing to $136 million by the end of our current 10-year plan (2018/19).
It's important to note that all council budgets and financial reports come under the close scrutiny of independent professional auditors. They are appointed by the government to ensure councils are fulfilling their legal obligations, reporting accurately, operating prudently, and planning in a sustainable manner.
This council's performance has consistently received the green light from these detailed and rigorous audit processes, while many other councils have not. Again, that is a performance we can be proud of.
It's no accident that Rotorua has been accorded the title of 'New Zealand's Best City' six times in the last 11 years.
This doesn't happen by accident. It requires a mayor and councillors with vision and foresight, and a team of professional and committed staff to turn that vision into reality.
Fortunately we also have generous community groups and dedicated individual citizens who roll up their sleeves to help make things happen, rather than simply standing on the sidelines attacking the efforts of others. We should celebrate what a great place this is to live, work and invest. Our district's vision is "Rotorua: living the dream - world class in every way."
This is a worthwhile aspiration and it is achievable if people continue to work together in a spirit of real co-operation, as most Rotorua people have done effectively for decades.