Coast council grapples with ‘foisted’ costs from Govt

Nicole Mathewson Reporter from The Press

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 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'".