Proposed 13.6 percent rates rise for Western Bay

Western Bay of Plenty District Council is proposing a 13.6 per cent rates increase for the coming year as part of its Long Term Plan 2024 – 2034 community kōrero.

Council’s proposed Long Term Plan budget, featuring the rate increase, reduces the anticipated rates rise by almost half, and would be achieved by pushing out the timing of some projects, increasing debt levels and smoothing infrastructure costs over the next 10 years.

Alternatively, if Council were to continue with the original timing of projects, as set out in the Long Term Plan 2021-2031, it would result in a 24.4 per cent rate increase.

“When we looked at how much it was going to cost to deliver things next year, and in subsequent years, compared to when we last budgeted for them in 2021, we realised it was going to cost a lot more,” says Western Bay Mayor James Denyer.

“We understand the pressure everyone is under – affordability, cost of living and inflation – and we’ve worked incredibly hard to develop the best possible scenario for our District, now and into the future. I am pleased that we have managed to reduce the increase to below the average across New Zealand.”

Local Government New Zealand figures show that roads and water supply infrastructure are 27 per cent more expensive to build, and sewerage systems 30 per cent more expensive, than they were three years ago, explains Mayor James.

And, with the District’s population expected to grow from 60,000 to 73,000 over the next 30 years, substantial investment in infrastructure is required.

Overall, Council’s capital works programme - which includes significant projects such as the Katikati wastewater outfall upgrade and Te Puke Wastewater Treatment Plant - has increased by 42 per cent since the last Long Term Plan.

“We knew it wasn’t acceptable to pass on all these costs to ratepayers. This meant balancing the impact of things outside of our control, like increased inflation and interest rates, with the things we can control, our rates and debt levels.

“We’ve done the hard yards, working out how we can reduce and smooth costs over the next 10 years, thinking about where we can sweat our assets and timing our projects in a way that will reduce those costs.

“We’ve also gone through our budgets with a fine-tooth comb, identifying areas where we can save without compromising essential services.”

While it may mean waiting longer for some projects, Council made these decisions to try and keep more money in people’s pockets, says Mayor James.

The plan was shaped by previous feedback from the community, gained through Council’s ‘Your Place Tō wāhi’ kōrero, in which more than 1100 residents took part.

“Community feedback is essential in building our District’s shared future, and now we are asking people join us in developing the best possible picture for everyone.

“The nuts and bolts of a Council are to provide key infrastructure, like clean drinking water, rubbish and recycling services, roads, playgrounds, libraries and swimming pools - and we pride ourselves on doing this well. However, we know that communities are so much more than that, and we remain focused on building and supporting happy, healthy communities where people can live good, fulfilling lives.”

Council’s Long Term Plan 2024–2034 community kōrero opens on Friday, 17 May.

From Friday 17 May Council will be seeking feedback on seven key questions:

• Changing the timing of some projects to reduce the impact on rates
• Spending less on some roading and walkway/cycleway projects to reduce the impact on rates
• Commercial/industrial and post-harvest zoned properties paying more towards road maintenance
• Stopping the District Wide Town Centre Development Fund
• Introducing a fixed fee per property that goes towards a community facilities fund
• Stopping the Pukehina Development Rate
• Considering permanently closing Te Puna Station Road

Key dates:

Friday, 17 May – Consultation opens

Monday, 17 June – Consultation ends

Thursday, 26 September – Long Term Plan 2024-34 adopted

What’s the Long Term Plan?

The Long Term Plan steers all Council activities and services and how these will be paid for over the next 10 years. It is reviewed every three years, setting out key areas of focus and what rates may look like for the next 10 years.