Comments from the Mayor and Acting Chief Executive
Welcome to the 2008/09 Annual Plan for the period 1 July 2008 to 30 June 2009. This plan is the last in the three year Long Term Council Community Plan cycle.
The triennial elections held in October resulted in 3 new Councilors being elected to the District Council. These are Steve Adam (Tihiroa Ward) and Andrew Ormsby and Robert Prescott (Otorohanga Ward). It was encouraging that no sitting member that offered themselves for reelection was challenged. I believe this is a show of confidence in the Council and the direction in which it is leading the District.
We also welcome Philip Tindle to the Otorohanga Community Board and Kit Jeffries, Jan Bennett and Kathy Workman- Beale to the Kawhia Community Board. Kathy has been elected as the representative of the Aotea settlement and this is the first time there has been Community Board representation from that area. We believe that Aotea issues will be able to be debated and put in front of the Council now that the settlement has a seat at the Table.
This is the first year the 2007 revaluation will take effect for rating purposes. This has altered the incidence of Rating and impacted to a large degree on urban properties. Changes to the funding Policy have also moved some of the incidence from Rating on Valuation to Uniform Charges which has also impacted on smaller valued properties. It is very rewarding that we can report the proposed rate increase across the District is less than that proposed in the Long Term Council Community Plan.
This year each District Hall has been asked to provide financial information to support the level of rates they have traditionally requested. This has resulted in rates not being levied for some rural Halls.
The District continues to experience growth from subdivision, building and dairy conversion. These activities place the Council resources under extreme pressure. This pressure is not only from the volume of applications but from the increasing regulation and control required to properly manage these activities.
Building Control
Under the Building Act 2004 a number of significant changes are being made to the way in which the building industry operates. These changes include a requirement for all local authorities to become accredited. There are also new requirements for the licensing of building practitioners (eg builders and architects) and building products.
The changes being driven through the building industry reforms are leading to a level of increased complexity and administration for everyone involved. While the Council will achieve accreditation during the current financial year, there are a number of on-going implications for the Council as we work towards achieving the further two stages of accreditation that have been set for 2010 and 2013.
The accreditation process and other changes that are being required as a result of the new Building Act do bring additional costs. The Council is looking to recover some of these costs through increased building consent fees
District Plan Review
The Council is making progress on the District Plan Review and has employed an additional Resource to work through this project.
The review process, through community and stakeholder consultation has identified issues with the current District Plan. The review process involves expanding upon these issues and providing options as to how these issues can be addressed through the District Plan. Discussion Papers and where necessary use of experts in relevant fields is the means to expand upon these and to best inform and advise Council regarding the review and drafting of the District Plan.
Council is committed to ensure stakeholders and interested parties have access to Discussion Papers and expert opinions as well as the opportunity to provide comment. Discussion Papers for specific topic areas have and will continue to be drafted and released through out 2008. Timing of these are dependent on the availability of necessary experts and information from Central, Regional government and other agencies. The intention being that a Proposed District Plan to be notified at the end of the 2008 calendar year.
For more information regarding the review process and the discussion paper topics please visit /Environmental/District+Plan/. This is also the site where you can gain access to the Discussion Papers currently available.
It is important that all Residents and Ratepayers in the District take an interest in this project. It is important that we create a robust Plan that will serve the Council for the next 10 years.
Financial Highlights
Average rate increases are forecast to be as follows –
Rural Area 2.9%
Otorohanga Community 7.8%
Kawhia Community 9.6%
Average Overall District Rate Increase 4.8%
This is the last year it is forecast that we will need to raise debt for the purposes of new work. Public Debt is forecast to peak at $14.1m at 30 June 2009 and each year after that reduce by an average of $1m per year for the next ten years.
The overall cash reserves of the District are now minimal as we move to a lesser reliance on Loan Raising. This is forecast to change after next years Long Term Council Community Plan.
Significant Projects
The most significant project forecast for the 2008/09 year is the development of Council land at Waiwera Street Kawhia. This land was purchased many years ago jointly by the Kawhia Community Board and Council. A successful development will provide a much needed strengthening of the rating base at Kawhia as well as the potential to increase the permanent population.
The Council has become aware that the Government is likely to announce that additional subsidy for Community Waste Water disposal schemes will be available in the near future. It is prudent therefore to continue and build on the work previously done to put the Kawhia Community in a better position to obtain subsidy. We believe it is inevitable that a scheme will be required at Kawhia at some future time. However when we have the approval it will not commit the Council to commencing the scheme. It will only establish the likely financial implications to enable consultation with the Community to commence.
Water Supply Issues
The extreme drought conditions experienced last summer, combined with continuing property development and the introduction of new legislative requirements, have further highlighted the need for improved management of water resources in the District, to ensure that current and future needs can be met.
Works to upgrade various Council water supplies are planned to commence in the near future, but it has also become increasingly clear that water is a precious resource which must not be wasted, and progressive measures to reduce the potential for such wastage are therefore to be introduced in the Otorohanga and Kawhia communities, commencing in 2008/9.
Dale Williams John Pevreal
MAYOR ACTING CHIEF EXECUTIVE
3rd June 2008