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By local democracy reporter Brendon McMahon:
The West Coast Regional Council is projecting a 16.42% rates increase for 2023-24.
That increase is mainly attributed to an explosion in Te Tai o Poutini Plan costs as it moves towards the formal hearing stage and the recommendation is that … View moreBy local democracy reporter Brendon McMahon:
The West Coast Regional Council is projecting a 16.42% rates increase for 2023-24.
That increase is mainly attributed to an explosion in Te Tai o Poutini Plan costs as it moves towards the formal hearing stage and the recommendation is that council double the rates component for the combined district plan when the draft annual plan is debated at an extraordinary meeting tomorrow in Paroa.
Council is projecting an operating funding deficit of more than $1.1 million in the coming year.
The increase under the draft 2023-24 annual plan is in line with year three of council’s 2021-31 long-term plan (LTP), which allows a 10% rates increase, and therefore a new round of public consultation was not mandatory.
However, the budget has been prepared in a context of “increasing pressures” on the ability of council to fund and deliver the projected 10 percent rates increase plus the cost of inflation, acting corporate services manager Katherine Harbrow says in the agenda.
“The LTP year 2 had projected a general rate 10 percent rate increase plus inflation however the 2022-23 Annual Plan that was adopted in September 2022 absorbed the inflation.
“This means that to meet the levels of service the general rate - excluding uniform charges - is now projected at an 16.42% increase for the 2023-24 Annual Plan.”
Rating differentials to be applied for the more than 20 individual river and coastal rating districts across the region where they had met - had discussed the rating required to complete the necessary maintenance, borrowing and capital expenditure in 2023-24.
But the burden of the costs for the combined district plan from the 2019 Order in Council for council to shoulder the costs for preparing, notifying, adopting, periodically amending, and reviewing the combined TTPP is telling however.
The council was ordered to fund it “by a rate set in relation to all rateable land” regionally and apart from an initial $240,000 from the Government, it has received no other help.
The three districts who are still funding their current operable district plans until the TTPP is passed do not contribute.
“The costs for the TTPP in 2023-24 are higher than expected in the long-term plan due to inflation pressure and under-budgeting of the hearing costs,” Harbrow’s report says.
As a result the TTPP rate component should “be doubled” to $1m from $500,000 this coming financial year, and again in 2024-25.
“The balance of the funding required in 2023-24 will be borrowed, unless alternative funding can be found. Alternative funding options are being followed up by staff.”
Overall, council is expecting subsidies and grants revenue of $16,514.741 in 2023-24 including money allocated via various central government streams for the infrastructure projects.
Its total revenue is expected to be $37.5m, with rates making up $10.8m of that.
The report notes the revenue included in the 2021-31 LTP “was too ambitious” and the forecast revenue is based on the current volumes of consents and compliance work.
Meanwhile, overhead costs had been reviewed so that external services such as council’s community resilience function bore a share of the internal overheads borne by IT, human resources, corporate services, property, and vehicle fleet.
“The method was changed to ensure all external services received a fair share of the costs in relation to their employee costs and fleet usage.”
Council’s Vector Control Services business unit has subsidies and grants revenue of $5.5m to cover expenditure and is projected to make a $618,692 return to council, after overheads.
*Local Democracy Reporting is Public Interest Journalism funded through NZ On Air
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From local democracy reporter Brendon McMahon:
The West Coast Regional Council is due to be set its budget on Tuesday but $2.2 million of "foisted" Te Tai o Poutini Plan costs has the finance committee chairman seething.
It was unfair that ratepayers alone should wear that cost, and… View moreFrom local democracy reporter Brendon McMahon:
The West Coast Regional Council is due to be set its budget on Tuesday but $2.2 million of "foisted" Te Tai o Poutini Plan costs has the finance committee chairman seething.
It was unfair that ratepayers alone should wear that cost, and it would result in a "significant rates rise", audit and risk chairperson Frank Dooley said.
To date, deliberations for the 2023-24 annual plan have mainly been held behind closed doors.
In the past two financial years, the regional council has lifted the rates by 40%, and according to the long-term plan a further 10% could be added this year.
A budget incorporating the total 10% limit will mean ratepayers have been clobbered with a 50% increase in regional rates in three years.
Former chief executive Heather Mabin said public consultation for the annual plan was not needed as nothing new outside the current LTP was anticipated.
Last year the council approved a general rate rise of 10% but excluded the planned inflation adjustment under the LTP of 2.3%.
Dooley said outside TTPP and emergency management costs he was comfortable with how the budget was shaping up.
The general rates increase was "definitely under the 10%", as per the LTP.
"But when we add on the costs of the TTPP and costs of emergency management, there will be a significant rates rise."
Councillors had to decide how to mitigate that, along with the imposed emergency management function formerly paid for by the districts. The options included "an increase in borrowings and an increase in debt".
Overall, just relying on rates left the council on "the back foot again" while also having to continue to fund its core operational functions.
"We have reached a tenable position. I think that's important for this council to do because we are dealing with the imposted cost for the TTPP process - that's a $2.2m impost on our cost structure."
The TTPP, imposed on the West Coast by the Government, should have resulted in a corresponding reduction in district council rates.
"They should be reducing their rates. The (district councils) don't have to rate for it, that responsibility has been foisted on the regional council.
"Councillors already know what my position is ... at the end of the day, the overall consideration is for the ratepayer.
"But while we consider the affordability for the ratepayer the WCRC suffers because we have to increase our debt -- that is annoying."
The "snowballing impact" of the pending TTPP - a combined district plan for the Coast - was worrying when the council would be faced with the review of the plan after five years.
Dooley said he had no issue about borrowing to fund capital works as it resulted in tangible assets for the region.
But borrowing for the TTPP was another matter.
The council remained in a tricky position due to the 2019 Order in Council for the TTPP, leaving the councils to shepherd the regional plans blueprint for the Government's RMA suite of reform.
Dooley noted the RMA reform suite would make funding available for councils to formulate new regional plans.
But meantime this was not available for the West Coast.
"We need to get it out there now and rate for the whole lot, and let the ratepayer on the West Coast know the real cost of the TTPP process that's been foisted on us by central Government.
"We're the first cab off the rank and the Government has not given any funding to us (apart from $200,000 at the start of the process. It's not a fair playing field."
Dooley noted that Local Government NZ had lobbied the Government including the RMA reforms architect Environment Minister David Parker who "came back and said 'suck it up'".
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Sir Tim Shadbolt drew some criticism after suggesting a statue be erected in his town for his long-standing mayorship in Invercargill. This week is National Volunteer Week, a time to reflect on those who have given their time selflessly to your community and made a difference. So, which local do … View moreSir Tim Shadbolt drew some criticism after suggesting a statue be erected in his town for his long-standing mayorship in Invercargill. This week is National Volunteer Week, a time to reflect on those who have given their time selflessly to your community and made a difference. So, which local do you think deserves recognition? Tell us why!
Type 'Not For Print' if you wish your comments to be excluded from the We Say You Say column of your local paper.
A big thank you to everyone who nominated a small business in this year's Prospa Local Business Hero awards - and who got behind our 11 regional finalists and voted.
And a huge congratulations to Meg Wilson - the founder of PAWS (Pet Animal Welfare Shops) across South Waikato! Meg's … View moreA big thank you to everyone who nominated a small business in this year's Prospa Local Business Hero awards - and who got behind our 11 regional finalists and voted.
And a huge congratulations to Meg Wilson - the founder of PAWS (Pet Animal Welfare Shops) across South Waikato! Meg's passion for pets received almost 20% of votes which has seen her walk away with a prize package worth $10,000 to support the work she and her team of volunteers do each day.
Thank you Neighbourly members for rallying around businesses in your community and continuing to show them how valued they are!
From local democracy reporter Brendon McMahon:
An increase in vexatious environmental complaints to the West Coast Regional Council has been dismissed by one councillor as 'whinging'.
The number and type of complaints reported back each month to the Resource Management Committee … View moreFrom local democracy reporter Brendon McMahon:
An increase in vexatious environmental complaints to the West Coast Regional Council has been dismissed by one councillor as 'whinging'.
The number and type of complaints reported back each month to the Resource Management Committee raised some comment last week when a staff reported noted 21 complaints or incidents between late April and May 26.
Planning and science manager Fiona Thomson said staff had also monitored 26 individual resource consents and investigated 21 "complaints'’.
Staff also made 12 mining compliance and bond release visits.
Committee chairperson Brett Cummings said the council seemed to be dealing with "an awful lot" of complaints at present.
Thomson said the compliance team was certainly "all hands on deck".
"It's definitely got very busy in the complaints space."
Councillor Allan Birchfield said the motive of some complainants could be characterised in the same way the leader of the Opposition had recently said - "we've become a nation of whingers and moaners".
Previous enforcement reports with "heaps of complaints" did not necessarily reflect well on the repeat complainants, he said.
"We're becoming quite pathetic actually."
Councillor Peter Haddock said vexatious complainants were certainly tying up staff time unnecessarily.
He referred to a previous example of someone's lunch rubbish left on a riverbank prompting an investigation by the council as to the point being made by Birchfield.
"A lot are unfounded and quite unfounded ... at the end of the day it costs the ratepayers."
Our June Seniors newsletter is out today. In this issue, we focus on the cost of living. We share some practical advice on how to save money on your health, home and everyday expenses plus much more.
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You nominated your most-loved locals - now it’s time to vote! We’ve managed to whittle down over a thousand nominations into regional finalists, so we need to know who deserves to win. Regional winners will go into the running for national titles, as judged by a panel led by Peter Gordon, so … View moreYou nominated your most-loved locals - now it’s time to vote! We’ve managed to whittle down over a thousand nominations into regional finalists, so we need to know who deserves to win. Regional winners will go into the running for national titles, as judged by a panel led by Peter Gordon, so make sure to get your votes in.
Head to stuff.co.nz/loveyourlocal to cast your votes, and go into the draw to win a Restaurant Association voucher.
Dear neighbours, every month, NZ Gardener runs a series of reader recipes using a seasonal crop. This month, we're on the hunt for cauliflower recipes! Send your best ones to mailbox@nzgardener.co.nz by June 25, 2023. Every published recipe wins a copy of the August issue of NZ Gardener.
June is upon us, so it's well and truly time to hunker down for the colder temperatures. For some across Aotearoa, this just means a second duvet on the bed. And for others, it's defrosting your car windscreen daily and bringing out the heaters.
What do you do to prepare for winter? … View moreJune is upon us, so it's well and truly time to hunker down for the colder temperatures. For some across Aotearoa, this just means a second duvet on the bed. And for others, it's defrosting your car windscreen daily and bringing out the heaters.
What do you do to prepare for winter? Share your tips for staying warm and dry, and for making the most of the chillier season.
Type 'Not For Print' if you wish your comments to be excluded from the We Say You Say column of your local paper.
Brendon McMahon
, Local democracy reporter
The future of nine properties excluded from the Westport flood scheme is still unclear.
In the meantime, the main partner to lead the project has been told to keep quiet.
The matter was brought up by West Coast Regional Council Infrastructure … View moreBrendon McMahon
, Local democracy reporter
The future of nine properties excluded from the Westport flood scheme is still unclear.
In the meantime, the main partner to lead the project has been told to keep quiet.
The matter was brought up by West Coast Regional Council Infrastructure Governance Committee chairperson Frank Dooley, of Westport, in his report on Tuesday.
Dooley said the nearly $23 million 'support package' from the Government, announced a month ago for Westport, had been very welcome.
However, the terms and conditions with the money were "closely held" between the council chairman, chief executive and the Government.
Dooley said the money was a significant injection of capital and was appreciated by the Westport community.
It was half the amount requested in the original $56m co-funded proposal put forward last year by the council at the encouragement of the Government. That had been seen as a blueprint for future 75% to 25% flood infrastructure co-funding elsewhere in the country.
However, councillor Mark McIntyre, of Westport, said there was not universal support in the wake of the $23m Budget announcement.
"Not everyone is happy," he said.
In particular, Snodgrass Rd residents were "still left hanging" and the precedent set by the Government announcement of categoried properties in Hawke's Bay not to allow rebuilds or "red zoning" had created even more uncertainty, McIntyre said.
Dooley said the Westport funding included an obligation for the council to work with affected property owners who might be excluded.
"You and I have some work to do particularly with our Snodgrass residents, and maybe others," he said to McIntyre.
The Hawke's Bay precedent gave some clarity.
"That obligation still sits on our shoulders," Dooley said.
The criteria for the new categories would come from local government and the insurance sector working together to inform those affected, chief executive Darryl Lew said.
Auckland and Gisborne were next in line for property category announcements.
"The question then comes to what about other areas around the country; that's what the rest of the country is waiting on," Lew said.
Council chairperson Peter Haddock said the next step for the Westport project itself would be a steering group, but the details of it were confidential by a Government directive.
Lew said there was little he could tell councillors as the chairperson and himself had been bound by a confidentiality agreement.
"We have met with DIA (Department of Internal Affairs) and have been told not to share."
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