Bay of Plenty Regional Council ratepayers can expect their next rates bill to be about 2.54 percent more than it was last year.

The council has approved the increase as it expects to spend $105.8 million in the next financial year.

Council chairman John Cronin says staff have worked hard to ensure the total rates package was kept realistic during the annual plan process.

'We included some new projects in the annual plan and budget as a result of the public response to our draft plan,” says John.

'At the same time we've kept the total rates requirement to $26.2 million.

'This is an increase of just 2.54 percent and includes general and targeted rates.”

John says the council expects to spend a total of $105.8 million in the 2011-2012 financial year and of that, $87.2 million is operating expenses and $18.6 million is capital expenses.

'We also have major responsibilities in flood protection, civil defence and emergency management, passenger transport, and monitoring and managing physical and natural resources such as geothermal fields, water quality and quantity,” says John.

The council has also agreed to fund a one-off $600,000 amount from reserves to cover the additional cost of local authority insurance premiums, which have increased as a result of the Christchurch earthquakes.

The council is also taking a $2.3 million loan for capital works on the region's major river schemes. The interest from this loan has resulted in an increase in targeted and general rates to service this debt.

Other council expenditure includes $1.8 million for the Judea Link package for Tauranga's Southern Pipeline, an additional $116,000 from reserves towards the Little Waihi sewerage scheme and $100,000 towards a pilot iwi secondment programme to build iwi capability.

Other major projects:
• Reviewing the Ten Year Plan
• Completing the second regional policy statement
• Developing an integrated management programme for Tauranga harbour and catchment
• Protecting and restoring the Rotorua lakes
• Improving Rotorua's air quality
• Facilitating and promoting sustainable regional economic development

The cost of these projects to the ratepayer has resulted in an about 2.54 percent rates increase.

Estimated rates increase by sub region:

Opotiki (land value $121,000) – rates are $100.69 for 2011/2012, an increase of $11.80 on last year. For the average property, total rates will be $1.94 per week.

Whakatane (land value $180,000) – rates are $114.00 for 2011/2012, an increase of $14.78 on last year. For the average property, total rates will be $2.19 per week.

Rotorua (land value $82,000) – rates are $250.67 for 2011/2012, a decrease of $10.81 on last year. For the average property, total rates will be $4.82 per week.

Tauranga (land value $200,000) – rates are $169.67 for 2011/2012, an increase of $1.18 on last year. For the average property, total rates will cost $3.26 per week.

Western Bay of Plenty (land value $310,000) – rates are $134.95 for 2011/2012, an increase of $10.16 on last year. For the average property, total rates will cost $2.60 per week.

Kawerau (land value $39,000) – rates are $81.83 for 2011/2012, an increase of $10.44 on last year. For the average property, total rates will cost $1.57 per week.