A Draft Annual Plan with drivers of affordability, debt reduction and value for money for ratepayers has delivered a low proposed average rate increase of 2.74%, Queenstown Lakes District Council chief executive Debra Lawson said.

“There have been some tough choices to make, however there is a lot of good news in the draft,’ she said.

A rate decrease of 0.88% had been the position before the Council opted to reduce debt by $1.9 million and fund it through rates.

“The Council considered this was a responsible approach to the work it is undertaking to ensure that the next 10-Year-Plan (2012) will be affordable,” QLDC deputy CEO and financial manager Stewart Burns said.

“This took us from a position of an overall rates reduction of 0.88% to an average overall increase of 2.74%,” he said.

Rates differed according to location and land use in the Queenstown Lakes District. “What that means is that the residential range, for example, is a decrease of 0.88% (Arthurs Point) through to an increase of 3.3% (Glenorchy),” Mr Burns said.

The commercial range was 2.23% (Arrowtown) to 3.92% (Queenstown), the accommodation range was 2.41% (Wanaka) to 5.27% (Queenstown) and rural property (district-wide) was 4.15% to 8.06%.

“These increases are mainly due to the increases in capital value rates (roading and general rates) to fund the debt reduction proposals,’ Mr Burns said.

That meant significant reductions were made elsewhere this year:

• Uniform Annual General Charge has decreased by $0.12 per property from $68.12 to $68.00.
• Waste Management Charge has decreased by $21.84 per residential property from $172.84 to $151.
• Waste Management Charge has also decreased by $14.02 per non residential property from $123.02 to $109.
• Aquatic Centre Charge (Wakatipu only) has decreased by $1.54 per property to $92 per annum.
• Recreation Charge has decreased by $12.60 per property to $268 per annum.
• Governance Charge has decreased by $0.10 per property to $128.

The exception being an increase for some targeted rates, for water supply and wastewater, due to increases in depreciation and the estimated prices from the utilities maintenance contract.

“This is a draft plan and there are some key issues that need community feedback before we can take the final decisions,” Ms Lawson said.

A proposed change to the roading level of service should catch everyone’s attention as it involved less winter gritting (due to reduced New Zealand Transport Agency funding) and an end to ratepayer funded oiling on unsealed roads.

“Council is looking for a firm guide on these issues, and others, including a proposal to lower the waste management rate but residents paying more according the amount of rubbish they make,” Ms Lawson said.

Other key issues being consulted on were: debt reduction; value for money; water demand management; progressing the Wanaka sports facility and deferring Project Shotover (Wakatipu waste water to land disposal).

The Council would be asked to adopt the Draft Annual Plan on Tuesday (12 April) with submissions opening on 16 April, 2011 and closing 16 May, 2011.

During the submission period a summary would be widely circulated and submissions called for online on the Council website. Draft Annual Plans can be viewed from tomorrow (Friday) at Council offices, libraries and online.

 Draft Annual Plan 2011/12 click here

By: Jo Blick