WBOP 10-year plan trims debt

Katikati's new library, three coastal cycleways and one of the lowest rate increases in recent years are among the subjects tackled by Western Bay of Plenty District Council's 10-year plan this week.

Council made decisions on the 2015 - 2025 Long Term Plan (LTP) after deliberating on more than 1000 submissions from property owners and members of the community.


The former Katikati Heritage Museum. Photo: File.

The LTP decision-making process comes after three months of consultation and community engagement, including a district–wide roadshow by councillors and staff, a one-month submission period and a week of hearings.

Mayor Ross Paterson says ratepayers gave council a very strong message that affordability of rates and a reduction of debt were the two issues of greatest concern.

Ross says council has listened to ratepayers, who were united in their call for a rein-in on rates.

'This has resulted in us achieving a rates increase of less than four per cent for the 2015/16 year and placing a four per cent cap on total rates rises from 2016 to 2025,” says Ross.

'Since going out with a draft proposal in March to increase rates by 4.8 per cent, council has managed to shave a further $500,000 from its budget to achieve this.”

Ross says by trimming this amount from this year's budget, the increase is slightly more than the forecast growth of 1.3 per cent and inflation of 1.7 per cent.

While there was a call for a rate freeze from the Western Ward Ratepayers Association, Ross says this would be unwise.

He adds: 'It would lead to a significant decline in council's ability to service ratepayers' needs, a reduction in operational and maintenance work and no ability to reduce debt.”

In response to more than 600 submissions from people calling for council to trim debt and manage it more prudently, the authority confirmed its commitment to reduce debt by an estimated $80million over the next 10 years.

To enable faster debt reduction and prevent growth-related debt compounding, they have also decided to increase the amount of money it puts into growth debt interest payments to $2.5m, compared to the $1m allocated during the last financial year.

Council will be recovering this from a mix of the General Rate, the Uniform Annual General Charge and the Roading Rate – an option supported by 421 submitters.

Key issues council called for feedback on included a rebuild of the Katikati Library, retention of the Katikati museum collection and their role regarding museums, a change to stormwater and swimming pools funding, three coastal cycleways and funding for Waihi Beach events and promotions.

Council approved the earlier construction of a $2.3m Katikati Library and community facility relocated to Talisman Drive.

There was mixed reaction from the 500 submitters to this proposal.

This included keeping the library as it is, building a larger one, going ahead with the earlier construction of a medium-sized building or demolishing the old fire station and building a new library on that site.

Council has decided on building the medium-sized library in 2016, rather than 2021 as previously planned.

The earlier build is due to over-crowding and lack of space in the existing library and the opportunity to build a facility at today's costs that meets the community's immediate and short term needs.

The $2.3m will be funded from the asset replacement reserve, the town centre development allocation of approximately $200,000, financial contributions and a rates funded loan over the next 25 years.

A heritage museum in Katikati will receive a $60,000 grant per year over the next three years to enable the museum to set up base in the former Katikati Fire Station.

Council has granted the $60,000 as an interim ‘seed fund' for the Museum Trust so the trust can apply for external funding for its ongoing operation.

Overwhelming community support for three coastal cycleways has given council the confidence to push ahead with $3m funding ($300,000 per year from the Roading Rate) towards their creation over the LTP 10-year span.

The routes – Omokoroa to Tauranga, Waihi to Waihi Beach and Tauranga Eastern Link to Maketu and Paengaroa – will be built in partnership with Central Government, Tauranga City Council and community funding trusts.

Waihi Beach will receive an annual grant of $40,000 to provide an information and events programme for the area.

This proposal gained 59 per cent support from submitters and council believes the programme will result in economic benefit to the community from increased visitor spending.

2 comments

Council savings-

Posted on 11-06-2015 07:33 | By leighmac

Is it not absolutely amazing that with 1.5 Billion $ in assets they can save $500.000. Much of the assets are in residential and commercial land holdings. It very simple sell, sell sell!!! the Mayors statement "that a reduction in Operational and Maintenance work would provide no ability to to reduce costs" is utter CRAP!!!


council savings

Posted on 11-06-2015 10:30 | By phoenix

Dont knock Utter Crap. That is what western bay of plenty district council statements are based on.


Leave a Comment


You must be logged in to make a comment.