Long Term Plan adoption deferred until political picture is clearer

The lack of clear national direction on core water and transportation services is prompting Western Bay of Plenty District Council to defer the adoption of its Long Term Plan.

Councillors agreed unanimously to defer the adoption of its core planning document by three months, providing time to factor in a number of potential government-driven changes, post the October 14 general election.

It will now adopt its Long Term Plan 2024-34 in September 2024.

The Long Term Plan sets the direction for all the activities and services Council provides, and how it will pay for these services over the next 10 years.

Western Bay of Plenty Mayor James Denyer says this is a very deliberate decision as there is significant uncertainty and implications in the affordable waters reform and transportation spaces following the general election.

He says it is vital to have the most accurate and up-to-date information on these key areas, which have a major impact on the Council's financial and infrastructure strategies, as well as on rates affordability for the community.

“The Long Term Plan is our direction and social licence to operate and do the best for our community to address their priorities and preferences.

“We don’t want to have a kōrero with our community on a plan that is based on incorrect or incomplete information, or when things are likely to change. That would not be fair or transparent.

“Ultimately, we will ensure that we produce a Long Term Plan that provides for growth in the District, takes account of government-driven changes, recognises the economic challenges, and balances the need for rates affordability against delivering what our communities expect.”

Updated every three years, the Long Term Plan is a requirement of the Local Government Act. The deferral means Council will miss the current deadline for adoption by the end of June 2024 – something a number of councils across Aotearoa are also grappling with. It’s unclear whether provision for later Long Term Plan adoption will be forthcoming in legislative changes.

“We are not alone in this space, with most councils experiencing challenging situations with rates and rating implications due to dealing with so many external factors all at once – the current legislative environment, change in government, inflation and the cost of living,” explains Mayor James.

The current environment is also challenging due to significant inflation and increased debt servicing costs, which put more pressure on Council's budget and ability to deliver core services and intergenerational projects.

Rates affordability is a key issue Council is facing, and the uncertainty on water management and transport would compromise Council’s decision-making.

“All of this makes it really challenging for councillors to make good trade-off decisions with so much uncertainty. We also need to ensure that we are not compromising core services and projects with longer-term benefits for short term rates reductions.

"This extra bit of time will allow us to make better informed decisions on our financial strategy, including debt levels and rates affordability considerations, and to present a more realistic and robust plan to our community for consultation in May and June 2024,” says Mayor James.

You can watch the Council kōrero here (starting at 24 minutes).

To view what the community has said so far as part of the Your Place Tō wāhi kōrero visit www.yourplace.nz to view the priorities, feedback and next steps for each of our 12 neighbourhoods.