Whakatāne District Council Elected Members voted yesterday (Wednesday, 14 June) by a 6/5 majority to amend its draft Annual Plan 2023/24 decision and approve a 9.5 percent average rates increase for the Whakatāne District.
The decision came after Council Elected Members presented their respective views on the benefits of rates increases now or in the future.
Yesterday's decision reflects the balance between making things affordable for communities and navigating extraordinary inflationary pressures, while delivering a level of service which makes the Whakatāne District a fantastic place to live, work and play.
The decision also highlights the extraordinary financial climate in which the Annual Plan has been developed, including the significant impacts of inflationary increases, higher interest rates and central government reforms.
While inflationary impacts are evident for consumers, councils operate on a cost index that accounts for the types of materials required to build and maintain infrastructure. Roading is one example with the cost of materials, concrete, and utility costs inflating by 50 percent in some instances.
Council had previously been presented with two options to meet the annual budget; a 6.92 percent average rates increase with $29.9 million additional borrowing, and a 9.5 percent average rates increase with an additional $28.4 million additional borrowing for the Whakatāne District.
On 30 March Council Elected members reviewed the draft Annual Plan and opted by a 6/5 majority to approve the 6.92 percent average rates increase that was committed to through the Long Term Plan in 2020.
One of the key drivers for the 9.5 percent increase was to consider the extent costs are fairly distributed between current and future ratepayers and allowing for the appropriate level of intergenerational investment.
Yesterday's decision to move to a 9.5 percent average rates increase will mean:
- Whakatāne urban average property will pay an additional $6.23 per week.
- Murupara, the average increase is $5.54 per week.
- An average Edgecumbe property will pay an additional $5.85 per week
- Te Teko property owners will pay an additional $4 per week.
- Whakatāne commercial average property will pay an additional $6.17 per week
- Rural horticultural property will pay an additional $13.06 per week.
During yesterday's debate Council Elected Members acknowledged the Annual Plan 2023/24 process has been particularly hard as they sought to rescope and reprioritise the work programme to ensure the right things are still in place at the right time.
Council staff will now finalise the Annual Plan 2023/24 and supporting documents which will be presented for adoption at an Extraordinary Council meeting on 21 June 2023.