Western Bay of Plenty residents are facing a 5.16 per cent rate increase in the coming year as the council looks to address flooding issues and growth-funded financial contributions.

Today, WBOPDC adopted its 2013/2014 Annual Plan, which will see rates rise by 5.16 per cent equating to $51.06million collected in total rates.

In the 2012/13 year council received $50.47m in rates, but as forecast in the Long Term Plan, council will increase 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.

Council considered 327 submissions on the Draft Annual Plan and has made some changes as a result, but reports it is committed to reducing debt and minimise rates rises.

The 5.16 per cent rate increase is lower than the 6.6 per cent forecast in the 2012-2022 Long Term Plan. The rate increase is 1.19 per cent above growth (0.90 per cent) and inflation (3.07 per cent).

The total income of $51.06 million takes into account the District Rate, Community Board Rates and Uniform Annual Charges.

Western Bay Mayor Ross Paterson says this year's annual plan is similar to previous years as council continues to operate in a tight fiscal environment.

'The rate strike has been achieved through council sticking to a very conservative spending mode and deferring capital works wherever prudent.

'This is putting some significant cost onto our ratepayers and they are feeling it. We need to point out this is the only way we are going to get through this.”

Total costs in the 2013/14 year are expected to be $92.3million - of which $54.1 million will be spent on maintaining existing council assets and delivering required services.

The most challenging issue for council was finding almost $1m to start addressing stormwater issues needing immediate attention in Waihi Beach, following severe flood damage in May.

Council will spend $996,000 this financial year for capital works on stormwater. Of this, $851,000 will be spent in the worst affected catchments of Waihi Beach. This expenditure is further to the additional $325,000 spent in the 2012/13 year on emergency flood response and minor works.

A surplus of $330,000 from this year's Roading and Reserves Budget will fund some of the work with the stormwater budget remaining $596,000 in debt to cover remaining costs, including costs incurred in the 2012/13 financial year to address the stormwater issues.

Ross says council intends to find a way of repaying this debt next year and will be consulting the Waihi Beach community on this issue during next year's annual plan process.

He admits stormwater issues are very complex and council is doing its best to address the worst affected areas.

'However much of Waihi Beach is a flood plain environment and is a designated flood hazard area.”

Deputy Mayor Paul Thomas says the allocated rates and annual plan decisions highlight the difficult issues council is trying to deal with urgently.

'Water, sewage and stormwater, these are the difficult things we have had to face.

'These are the three main areas we have been hit hard by and I think if we lay it out straight to them [ratepayers] they will understand.”

Ross says prudent treasury management has resulted in interest on external debt falling below budget. This is because both debt and interest rates are lower than forecast with council using short -term lending facilities at very low margins early in the 2011/12 financial year.

In terms of growth, council has revised its forecast down from 1 per cent to 0.9 per cent for the 2013/14 year. While it had budgeted to receive $5.55m from growth-funded financial contributions (payments made by developers for subdivision), actual income is about $800,000 lower than forecast.

This financial year council will make a contribution from general rates of $700,000 plus $300,000 from the roading rate to help meet interest costs on growth-related debt of about $110m.

Regarding the Waihi Beach Dune Protection Revenue and Financing Policy, council retained their 70/30 split rate where Waihi Beach ward ratepayers continue to pay 30 per cent of the cost of the dune enhancement works and effected properties pay 70 per cent.

The original preferred option in the draft annual plan was a 50/50 funding split, where Waihi Beach ward ratepayers and affected properties share the costs of dune enhancement works.

Ross says 189 submissions were received on this issue, the majority of which supported the status quo.

To contain any further costs for dune-front ratepayers surpluses will be used to fund a $160,000 cost over-run for sand replenishment following storm events last year.

The 70/30 split and allocation of Council surpluses will result in an annual rate of $597 for Glen Isla Place ratepayers; $581 for Shaw Road ratepayers and a $12.75 rate across the Waihi Beach Ward.

Changes made as a result of submissions to the draft Annual Plan include:

Additions to the General Rate

• General Rates funding of $33,000 for the Tauranga Art Gallery
• An $18,000 increase in the Civil Defence and Emergency Management budget for providing Civil Defence services in the District
• Funding of $10,000 for Tauranga Safe Cities

Changes to Targeted Rates

• $10,000 additional funding for Katch Katikati Inc.
• $26,000 for community halls insurance.

These decisions added a further $97,000 to the Draft Annual Plan budget. This was offset by savings and deferrals resulting in an increase in rates of $46,000.

Significant decisions:

Waihi Beach dune sand replacement

Council will subsidise a one-off $160,000 cost overrun from general surpluses.

Water Uniform Annual Charge

The unmetered and metered water Uniform Annual Charge for the three water supply zones (eastern, central and western) remain as forecast. A full review of the charging regime will be done in the 2013/14 year.

Te Puke Pool

Ratepayers in the Te Puke and Maketu areas of benefit will pay a single rate of $14.85 to fund the pool operations. This will ensure costs are spread more evenly over these areas of benefit.

Community halls insurance

Council will rate insurance costs in the relevant hall area of benefit to those communities that request this assistance. Hall committees will need to notify Council each year whether they want premiums to be rated.

Te Puke Economic Development Group

Council declined a request by Te Puke Economic Development Group to re-allocate $165,000 of funding from Tourism Bay of Plenty to local tourism groups in Te Puke, Katikati, Waihi Beach and Kaimai.

Katch Katikati Inc.

Increased funding by $10,000 to be charged as a Targeted Rate.

Katikati Town Centre

Council will fund the purchase of the future library/Council office site known as the Dunning Block through a transfer of $650,000 from the Recreation and Leisure Financial Contribution Reserve to the Katikati Town Centre Development Reserve. This will enable parts of the Katikati Town Centre Plan to progress faster than otherwise would have occurred.

Katikati Heritage Museum

Council declined the request to fund the Museum Trust but will consider, as part of the 2014/15 Draft Annual Plan public consultation, establishing a targeted rate for the Trust.

Park Road Katikati

Council approved $120,000 for upgrading this road to coincide with the Summerset Village development.

Te Puke Skateboard Park

Council approved the location of a new skateboard facility on Jubilee Park adjacent to the new Destination Playground. Council will contribute $50,000 to the facility with the community raising the balance of funds.

Tauranga Art Gallery and Art Bus

Council approved $33,000 from the General Rate for a one-year period. This reflects support for the regional asset, creative initiative and access to the Gallery for school students through the Art Bus.

Battle of Gate Pa commemoration

A contribution of $10,000 from the Cultural Events Fund toward costs of the 150^th anniversary of the Battle of Gate Pa planned for April 2014.

Rural Forum

Council supports the establishment of a sub-regional Rural Forum as part of the SmartGrowth review. The Forum would provide a formal medium for the rural sector to have input into issues affecting their interests.

Omokoroa Structure Plan review

Council will review the Omokoroa and Te Puna structure plans as proposed in the SmartGrowth strategy. This review will bring the future plans for Omokoroa and Te Puna in line with changed population growth and settlement patterns. An additional $50,000 will be funded from the existing budget.

McLaren Falls Pedestrian Bridge

Council has agreed to build the pedestrian bridge this financial year by providing an additional $120,000 from the Rural Communities Roading budget. The project has a total cost of $270,000.

Waihi Beach floodable area

$851,000 to fund stormwater works. Areas of work include:

• Coronation Park bund
• One Mile Creek/Beach Road culvery replacement
• Otto Road pumped drainage system
• Waihi Beach Dam repairs and discharge
• Wilson Road culvert flap gate installation
• One Mile Creek retention works and repair to gabions
• Esplanade drainage
• Resource Consent for Two Mile Creek bank protection on behalf of property owners in preparation for future works
• Subsidy for building consents for property owners raising floor levels in floodable zones.

Seal extension work

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