24/05/2005

Why Oto's rates are proposed to go up 6 per cent

Last week's Waitomo News reported that the rates increase proposed for Otorohanga District ratepayers for the coming 2005-06 year is 6.4 per cent, and I was quoted (correctly) as being pleased with that projection.
I do not make that comment flippantly as rates are to everyone a burden and at first glance may seem to be difficult to justify, so let me expand on why I stand behind these comments. I stress the annual plan is out for public consultation right now, so the figures are subject to submission and final adoption.
It is also important to note that each community, rural area and district-wide rates projection is an average only, depending on where you pay rates and whether your property valuation increased greater or less than the district average will have an impact on your individual level of contribution.

1) It is widely reported, again correctly, that local and regional councils are made responsible for implementing and also funding an ever-increasing level of central government legislation.
This is not of our choosing. While sometimes our submissions are successful in minimising the impact to our ratepayers, essentially we have little option but to carry out these statutory obligations, albeit as fairly as possible.
This year about one third of the projected rate increase is a direct result of meeting these obligations.

2) While many councils are grappling with significant rates increases to fund their activities and faced with slashing work programmes, Otorohanga District Council is continuing to deliver a progressive and comprehensive level of maintenance, capital improvements and new developments in accordance with your expectations as identified in the LTCCP.
Otorohanga district was recently reported as outpacing all but one of the 12 Waikato councils in growth and development - endorsed by the latest property revaluations, and we need to keep adding value to your investment as ratepayers to this council.

3) We are committed to the fiscally responsible action of reducing loan funding to our largest activity - roading - substituting loans with increased rates input.
It would be politically kinder not to do so but the council you elected makes these sound, commercially viable and sustainable decisions on your behalf not just for today but the future too.
Councillors bring your concerns and comments to the table, debate them and democratically resolve what is best for the future of Otorohanga district.
You are very well served, and I commend my team and staff for that.

4) Finally, and most importantly - taking all the above into account - we are able to keep our word to you as forecast in previous annual plans.

After a three-week break exploring Europe, there's no question our corner of the world is truly unique and so special. It's great to be back.