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From local democracy reporter Brendon McMahon:
A 16.42% rates hike by the West Coast Regional Council is "disappointing" but the council had little option, chairperson Peter Haddock says.
Much of the increase was due to the council having to carry all the costs of the Te Tai o … View moreFrom local democracy reporter Brendon McMahon:
A 16.42% rates hike by the West Coast Regional Council is "disappointing" but the council had little option, chairperson Peter Haddock says.
Much of the increase was due to the council having to carry all the costs of the Te Tai o Poutini Plan, ordered by the Government.
Rating for that is being doubled in 2023-24 to $1 million, with worse to come: the costs of the submissions hearing stage is expected to 'snowball' the overall cost to more than $5.7 million.
Meantime, the council has doubled Civil Defence and emergency management funding to more than $600,000 to meet its statutory responsibilities.
Until a few years ago, that was funded by each district council with National Emergency Management Agency (NEMA) support.
Meantime, a fresh approach to the Government over helping cover the TTPP costs - given its trial run status for the regional plan framework set out in the RMA reform - had been agreed regionally.
"Hopefully we may get some relief from Government."
Despite knock-backs already after meetings with the Ministers of Environment and Local Government, "we've got a strategy to follow up," Haddock said.
The other elements pushing the rates increase above the 10% ceiling laid out in the 2021-31 long-term plan was the need for more flood protection investigation, Total Mobility subsidised transport, and increasing community resilience services.
Buller mayor Jamie Cleine said ratepayer funding the TTPP was "problematic" on a tiny rating base of about 15,000 properties throughout the West Coast.
The region needed the investment to complete the TTPP, given that the current three district plans it replaces are all due to expire.
At the same time, the wider benefit of the TTPP as the Government rolls out its new regional plans requirement also needed to be recognised, Cleine, a member of the TTPP Committee, said.
"We've written to the ministers again. That's the right thing to do; it's an imposition the Crown put on to us."
The TTPP Committee was also conscious of "the unknown" given an 18-month hearing process and likelihood of expensive litigation.
"We run the risk of making that a lot worse if we don't fund and run that properly."
A counter-argument is that district councils should start decreasing their rates because they no longer needed to fund their district plans with the regional council now doing the one district plan.
However, Cleine said districts still had to run their existing plans and provide technical support in formulating the new plan.
He said the workload of each district council planning department had actually increased due to the TTPP.
"During the formulation stage, I'd say the workload is considerably more for each district; each district has been part of a technical team working alongside the TTPP. That should change a little but down the track."
However, the West Coast was exposed to a raft of legislative change coinciding with the TTPP, and the region's size and the complexity of land activity compounded this.
"It's a vast area... a huge change in planning for what each district had before."
Westland mayor and TTPP member Helen Lash said they continued to tell the Government it was unfair to push the full cost on to ratepayers.
"We're being used as a guinea pig... it's only when you get through the process that you understand the costs," Lash said.
Wellington had not committed to changing its mindset yet and that had left the regional council with no option but to increase the rates.
"It's going to incur more costs. We've certainly not been flamboyant with the costs within it either," Lash said.
* Public Interest Journalism funded through NZ on Air
From local democracy reporter Brendon McMahon:
West Coast ratepayers now face among the biggest rates increases in the country.
This follows a walloping 16.42% general rate increase by the West Coast Regional Council.
The region's 398 farms will bear the brunt of the increase, which … View moreFrom local democracy reporter Brendon McMahon:
West Coast ratepayers now face among the biggest rates increases in the country.
This follows a walloping 16.42% general rate increase by the West Coast Regional Council.
The region's 398 farms will bear the brunt of the increase, which is largely due to a doubling of estimated costs for the Te Tai o Poutini Plan.
This increase alone will see farms with a capital value above $3 million pay $456 a year more in the next year. Civil Defence and emergency management extra costs will add $305. Excluding the uniform annual general charge, total rates for a $3m property will bump up to between $2280 and $3000 a year.
West Coast Federated Farmers president Bede O'Connor was aghast when he heard the council had approved a 16.42% rates increase, as he thought ratepayers were yet to be consulted.
However, the regional council earlier ruled out putting its budget to the public as it was still forecasting a 10% rise in year three of the 2021-31 long term plan.
O'Connor said it was difficult to say the council should not bump the rates up, but for farmers in particular "it's bloody hard".
The Coast had sought the TTPP - with its associated cost - rather than a more radical amalgamation of the four councils, he said.
"The TTPP is what we wanted for the West Coast.
"I'd say it's disappointing to see that rates rise, but we understand the council has to operate in a financially responsible way. We look forward to more dialogue on how council is going to trim their expenses and what they deliver," O'Connor said.
With Grey and Buller district council rate rises of 5.63% and 6.8% respectively, ratepayers in those districts now face increases of upwards of 22%.
Farmers also have to shoulder separate rate costs of their river protection rating district, on top of their rates bills.
Harihari farmer and Wanganui River Rating District spokesperson Jon Sullivan said the regional increase was another example of imposition of costs through policy direction.
It fitted with a trend of public agencies "disconnected from reality" affecting the viability of farming.
"I'm hearing that the Government expansion in employees in government departments has risen by over 10,000 people, and that doesn't include contractors," Sullivan said.
"What do we actually get out of it? Nothing."
Overall, the total rates increase for Grey district ratepayers will start at 22.05% and in Buller it will be from 23.2%.
Westland district ratepayers are cushioned for one year, as their council voted for a 0.2% increase after deciding not to rate for depreciation of its three waters assets for next year.
In a statement after the regional council approved the 16.42% increase, chairperson Peter Haddock said they were mindful of "challenging times" for ratepayers.
Ratepayers were encouraged to tap into councils rates remission and postponement policy.
However after the meeting he said the ability of council to make exceptions would be "on a case by case basis" and was likely to be rare.
*Public interest journalism funded through NZ On Air
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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."
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