Media Releases
Far North Confirms 2009-10 Budget
25 June 2009
The Far North District Council has confirmed an increase in the general rates on an average residential property of 3.92 per cent for the 2009/10 financial year. The new rates come into effect from 01 July 2009.
However for properties connected to wastewater and water services in urban areas, total rates payments are expected to increase by between 12 and 14 per cent as the impact of increases in rates targeted to these services takes effect.
The increases were forecast in May following council deliberations on submissions to the Far North Future Plan (LTCCP) and were confirmed by the Council today.
The new level of rates will fund a budget extensively pruned to reflect concerns at the widening impacts of the current economic climate. Both capital and operational spending has been cut across the board to produce a basic budget in keeping with the times.
Other rating changes now confirmed are decisions to abandon the Economic Development Rate struck last year and to incorporate the Sewerage Public Good Rate into the General Rate.
While the effect on individual ratepayers will vary depending on the location of a property, the greatest impact of the changes is likely to fall on properties connected to water and wastewater services and on properties with traditionally low land values.
Proposed increases to targeted rates for drainage areas have been abandoned and drainage rates will be struck at the same level as for the 2008/09 financial year.
On preparing the new budget the council has taken a hard look at questions of affordability and has deferred capital projects which have not met the criteria of being essential, able to attract external financial support, or are projects to which commitments have been made.
"We have also reduced operational expenditure to ensure as an organisation we live within the budgets set and we continue to look for ways to do things in a more cost effective way," Far North Mayor Wayne Brown said.
"A number of capital projects have either been deferred until later in the 10-year programme or have been dropped indefinitely. My council makes no apologies for this – we cannot continue to borrow to fund projects which it would be nice to see go ahead but which we really cannot afford.
"Our operational expenditure growth projections actually reflect favourably against the national average as expressed recently by the Minister for Local Government. We are working on a projected 33 per cent growth in operational costs over 10 years (national average 41 per cent) and rate income growth over the same period of 42.5 per cent (national average 48 per cent).
"These are harsh economic times and while we are acting responsibly, there is no room for complacency. We must continue to keep a clear focus on what we can and can’t afford to do.
"There are still some issues which remain unresolved - in particular the vexed question of how to create more equity in the way in which rates are levied. Although I strongly believe a change to a Capital Value rate base would have addressed a number of existing anomalies, this was not what the submitting community told us it wanted.
"During the next 12 months we will be taking another long, hard look at some aspects of the way we raise funds, including a review of ward rates, rating differential options and the farmland rates postponement scheme.”
In the meantime, to help ease the financial burden on ratepayers, the council is looking to quit surplus property and where suitable, to return community assets such as community halls, cemeteries and pensioner housing to community committees, trusts, or other appropriate providers.
"This year it is also planned to take a big picture view of the whole subject of wastewater and how growth, replacement and environmental needs can be more sensibly addressed. The Council is increasingly battling its way through the Environment Court on renewal projects and there has to be a better and more cost-effective way to deal with these matters," Mayor Brown said.
"We have also carefully noted the ongoing debate in New Zealand on local government structures and the need for more cost-effective units.
"We have reconfirmed our commitment to examine closely all options to minimise bureaucracy, simplify structures, maximise service delivery, reduce costs and simplify engagement with local government at all levels.”
Page created/updated: 26 June 2009 at 4:58 pm
