Rodney “no frills” budget reflects economic realities

Rodney District Council proposes to increase rates by an average of 5.2 percent in the next financial year to help fund capital expenditure of $83.5 million.

Water charges have also increased. The property charge in rural areas is up from $178.32 to $226.05 and the rate per 1000 litres is up from $3.24 to $3.47.

Many projects have been slashed in order to keep rates to a minimum, including the SH16-Worker Rd link and the Wellsford town centre upgrade.

The total roading and streetscape budget in the draft Long Term Council Community Plan (LTCCP) has been cut by $168,000 million, including a $26 million reduction in walkway/cycleway funding, and there will be no new seal extension work during the 10-year life of the plan.

Mayor Penny Webster says Council recognises that there is a limit to the financial burden that current residents and ratepayers can carry.

“We have tried to tackle this by introducing or making changes to our policies such as those that deal with development contributions and revenue and finance, which aim at fairness and balance for both current and future ratepayers,” she says.

Chief executive Rodger Kerr-Newell says the new Development Contributions Policy sets out more comprehensively the costs associated with development and how these will be funded. He says under the proposed policy, developers of smaller properties will end up paying less than larger properties.

“This enables Council to link its charges to the expected demand for its services,” he says. “The rate increase is slightly below the rate of inflation calculated for Council.
This level of rate increase necessitates that Council’s focus over the next 10 years will be on maintaining existing services rather than developing new services, except where these are needed due to population growth and funded by new residents.”
At the adoption of the draft plan for release to the community, Cr June Turner said she intended to pursue Central Government to allow councils to fine people who break bylaws.

“Last year we spent $238,000 on graffiti removal,” she said. “We should be able to recoup money from people who break our bylaws as a means of increasing Council revenue.”

Cr Grev Walker said that never before was there a greater need for the community to understand the LTCCP, and the capital works proposals in particular, and comment.
“The change to the seal extension programme is far too radical and next year’s predicted rate rise of 7.4 percent needs to be seriously considered,” he said.
The community now has a month to comment on the draft (see panel) before it is adopted by Council on June 26.

Ratepayers can go online (www.rodney.govt.nz) to see what the proposed rate increases will mean to their individual property charges.



Major projects to be undertaken in the next 10 years:
• The current water supply system in Wellsford is not capable of meeting future demands due to projected growth assumptions. Council will investigate the options of a bore water supply or upgrading the existing system within the next three years.
• Wastewater plant upgrade at Wellsford ($3.3m).
• Work will start on the construction of a new Wellsford Library ($3.6m), possibly in conjunction with a museum facility, in the 2011/12 financial year.
Other activities for the 2009/10 financial year:
Mt Brame Quarry $320,000

Projects excluded from the current LTCCP:
Rodney Street improvements $2.5m
SH16 Worker Rd link $1m
Shopfront improvements $273,000
Worker Rd extension $516,000
Wellsford carpark upgrade $532,000
Corry Farm development $411,000
Wellsford toilet $308,000
Pakiri Rd end carpark $118,000