Western Bay of Plenty Council is proposing a rates increase of 5 per cent this year after approving its draft 2013/2014 Annual Plan.

The council is proposing to increase rates by 5.07 per cent – down from the 6.6 per cent forecast in the 2012-2022 Long Term Plan.

Council reports the rates rise is 1.1 per cent above growth (0.90%) and inflation (3.07%).

Council expects to receive income of $52.99 million from rates for the financial year – compared to $50.47 million in the 2012/13 year.

Total costs in the 2013/14 year are expected to be $92.6million of which $58.2million will be spent on simply maintaining existing council assets and delivering required services.

Mayor Ross Paterson says little has changed in Council's operating environment for the coming year.

'While council shouldered the challenges of last year relatively well, we continue to face tough times so there is little change in our fiscal approach.

'We will be reducing internal spending, deferring capital expenditure, repaying interest on debt and keeping rate increases to a minimum,'' says Ross.

Council has revised its growth forecast down from 1 per cent to 0.9 per cent for the 2013/14 year and has budgeted to receive $5.5million from growth-funded financial contributions (payments made by developers for subdivisions).

'It is heartening to see some developers continuing with their plans and making the most of the tools Council offers to help fund their developments without any risk either to Council or ratepayers,'' says Ross.

He says property owners will not experience the wide fluctuations in rates caused by last year's property re-valuations that impacted on annual rates.

Any increases this year will be a reflection only of Council's rating – the average rate rise across the district is between 3.2 per cent and 7.0 per cent, depending on the services each property receives and associated targeted rates.

Commenting on Council's debt position Ross says investment in water, wastewater and stormwater infrastructure over the past decade has incurred $109 million worth of current debt.

'Council will continue to recover income from these infrastructure investments in the most equitable way.

'As forecast in the Long Term Plan, Council will increase charges (Uniform Annual Charges) for water, wastewater and stormwater by 5 per cent above inflation for the 2013/14 year and by 5 per cent in 2015. This will reduce to 3 per cent from 2016.

'This ensures that costs are recovered from those ratepayers receiving these services, rather than spreading the cost of the debt across all ratepayers in the District,” says Ross.

To help meet interest costs on growth-related debt Ross says Council also proposes to make a contribution from general rates of $700,000 this financial year plus $300,000 from the roading rate.

Seal extension work will continue in 2013/14 with a focus on Te Matai Road.

Three new proposals in this year's Draft Plan directly affect ratepayers in Waihi Beach, Te Puke and Maketu and community halls. Options relating to these proposals will be open for submissions from affected ratepayers.

Council is seeking comment from the public during the consultation period from 28 March to 29 April 2013.

The draft plan sets out the money Council needs to carry out work in the 2013/2014 financial year (1 July 2013-30 June 2014).

Ross urges ratepayers to make submissions to the Draft Annual Plan, the summary of which they will be receiving in the mail on Thursday, 28 March.

'Please read the summary carefully and note any issues you wish to address in a submission.

'Council will be holding public meetings during April to explain the Draft Annual Plan in detail – I urge people to come along to those meetings.”

Full details of the Draft Annual Plan will be available on Council's website www.westernbay.govt.nz from Thursday, 28 March.

Submissions close on 29 April and hearings will be held on 14, 15, 16 and 20 May.