Council Elected Members grappled with options for determining its draft Annual Plan 2023/24 at the 30 March meeting. The Annual Plan determines Council’s programme of work for the coming year.  

A fine line was drawn between the decision to increase rates now, or to increase debt and pay off in the future. This was in response to the significant impacts of inflation on Councils costs balanced against the day-to-day impacts on residents cost of living increases. 

There was robust discussion on the best way forward and Council decided by a one-vote majority to maintain the 6.92 percent average rates increase agreed through its Long Term Plan process. This option for funding the next financial year means Council will need to increase its borrowing to $29.9 million and reprioritise some forecasted infrastructure projects to deliver the projected work programme. 

Council supported an amendment to the staff recommendation of a 9.5 percent average rates increase which would require around $28.4 million borrowing. 

Council elected members acknowledged that there was an alignment of intent to get the best outcomes for its communities using the financial levers available, and that there was no easy solution in the current financial environment. 

The Annual Plan does not present a significant change from the projected work programme, and as the impacts are due largely to inflationary increases, Council agreed not carry out a formal consultation process. 

Council staff will now apply the proposed rating model to determine the likely impact of rating increases for different property values across the district. Additionally, staff will revise Council’s work programme for the coming year to determine reprioritisation of some projects.  

The final budget will be presented back to Council for approval at its 25 May meeting.