Welcome to the first Annual Plan prepared by the Otorohanga District Council under the Local Government Act 2002. It is also a first for myself as the District’s Mayor and for the newly elected Council.
Under the Local Government Act 2002 the purpose of an Annual Plan is to confirm the budgets and work programme set out in our Long Term Council Community Plan (LTCCP). Any divergences must be fully disclosed and explained.
The Otorohanga District Council’s LTCCP was adopted in June 2004, following public consultation. It is pleasing to note that the proposed rate increase for 2005/2006 is very close to the increase signalled.
Some of the key contributors to next year’s rate increase are:
Building Act 2004:
The new Building Act has added considerable responsibilities onto Councils. In order to meet these new requirements additional resources are required. It is intended that the increased costs will be recovered through building consent and inspection fees. However not all of the additional costs can be recovered in this manner and will therefore impact on rates.
District Planning:
Additional resources have been allocated to District Planning in both the 2005/2006 and 2006/2007 years. These funds will assist the Council to respond to growing concerns regarding the impact of development, particularly in the Kawhia area. It will also allow Council to bring forward the Review of the Otorohanga District Plan and to ensure that any proposed changes meet the needs of all residents and ratepayers.
Roading:
Council is committed to maintaining a proactive roading programme. Over the past decade the bulk of capital development on our roads has been funded through loan raising. This is no longer appropriate do to the high cost of servicing the Debt. Over the next four years Council’s loan raising for roads will be phased out. However, in order to ensure that capital works can continue it is proposed to progressively increase the rate contribution to roading over the same period. While this means that capital works can continue, albeit at a lower level, it also means that rate increases greater than the level of inflation are likely to be necessary for the next three to four years, however over time Money will be free to go to further Roading Development and not Debt Servicing.
Drinking Water Standards:
Provision has been included in all of the water accounts (Kawhia, Otorohanga and the rural water supplies) for upgrades resulting from the proposed Drinking Water Standards. There is considerable concern throughout New Zealand regarding the need for these standards and the additional costs they will impose – particularly on small communities. The major impact of the new standards will not be felt until the 2007/2008 financial year when capital upgrades are likely to be required.
Otorohanga Zoological Society:
Support for the re-development of the Otorohanga Kiwi House has been identified as a key Community Outcome. Considerable funding has been allocated to this project over the next few years. It is intended that these funds will allow the Zoological Society to advance their development plans and culminates with a $500,000 investment in the project in the 2007/2008 year.
The development of the Kiwi House will has no direct rate impact.
Waiwera Street Properties:
The Council is working with Ngati Hikairo to make land, currently in Council ownership, available for development. If this is possible there will be significant financial benefits for Kawhia ratepayers. It is possible that some unallocated expenditure may be required to advance this project.
New Otorohanga Commercial Rate:
A new rate has been proposed for commercial properties in the Otorohanga community. It is proposed that the funds generated by this rate ($15,000 in the 2005/2006 year) will be used to support community promotions, such as the Kiwiana theme. Despite this new rate commercial ratepayers will still, on average, enjoy an overall reduction in their rates.
Revaluation:
The District has recently been revalued for rating purposes. The result of the revaluation will directly affect the level of rates paid by individual ratepayers. A summary of the impacts is shown below. Please note that these are averaged summaries. The impact on individual properties may vary considerably.
|
Area |
Old Capital Value |
New Capital Value |
% Increase |
Otorohanga |
$126,078,300 |
$154,038,600 |
22.18% |
|
Kawhia |
$48,859,700 |
$86,181,500 |
76.39% |
|
Rural |
$1,329,547,950 |
$1,954,985,600 |
47.04% |
|
TOTAL |
$1,504,485,950 |
$2,195,205,700 |
45.91% |
The above table discloses a number of important features. Most satisfying is the overall increase in the District’s Capital Value. The 46% increase shows that the District is progressing well. It compares very favourably with the 8.53% increase at the last valuation.
Rates:
The proposed overall increase in rates for 2005/2006 is 6.4%. However the revaluation referred to above means that the impact upon individuals will vary significantly.
Rates in the Otorohanga Community will increase on average by 2.5% and rates in the Kawhia Community will increase by an average of 6.8%. These are both very pleasing results, particularly when the substantial increase in Kawhia’s capital value is taken into account.
Rates in the rural area will increase on average by 8.1%, however the revaluation means that this increase will vary considerably, as the value of coastal properties and sheep and beef farms have increased to a far greater extent than other rural land, such as dairy farms.
Funding Review:
The new Council has reviewed the Council’s funding policy. The major changes proposed are:
Roading: The rates requirement for this activity will be funded 15% from a uniform charge (which is a flat rate per rateable property) and 85% from rates levied on the capital value of rateable properties. Previously roading was funding 10% from a UAC and 90% from capital value rates.
Parks and Reserves: The rate requirement for this activity will be funded 20% from a uniform charge and 80% from rates levied on the capital value of each rateable property. Previously parks and reserves have been funded 15% from uniform charges and 85% from capital value rates.
Capital Works:
The Council’s development programme for the 2005/2006 year includes the following works: -
Ø The final 2.1km section of Wairehi Road will be sealed
Ø 1.2 km of Seal to be widened in Waipapa Road.
Ø Sealed and Unsealed Smoothing on roads as follows
o Lethbrdge and Ouruwhero Road Sealed Smoothing Total 2.3km
o Lurman Road (East) and Newman Road Unsealed Smoothing Total 4.0km
Ø Ongoing re-surfacing of roads in Otorohanga community’s commercial area in order to provide a smoother surface and reduce tar bleeding.
Ø Development of car parking in Kawhia.
Ø Roads in the Aotea community will be upgraded in preparation for sealing in 2006/2007.
Ø Reserve land in the Aotea community will be developed.
Ø Upgrading work on Otorohanga’s Water Reservoir.
Ø Replacement of old concrete water main in Williams Street, Otorohanga.
Ø Replacement of the sewer main in Frederick Street, Otorohanga.
Ø Funds have been set aside for the provision of an activity structure at the Otorohanga Swimming Pool complex.
Ø A major redevelopment of the Pensioner Housing units in Kawhia and Otorohanga is programmed, utilising Housing New Zealand funding.
Ø Funding has been allocated for the construction of a new truck wash in the Otorohanga community. It is intended that this will be self-funding.
Conclusion:
The proposals outlined in this Annual Plan are the result of a collaboration between Community Board Members and Councillors, and describe their views on how the Council can best contribute to the ongoing development of the District. However these views are not set in concrete. Elected members welcome your views on the matters outlined in this Plan and warmly invite you to take part in the submission process.