Game plan in mind, Annual Plan adopted
Honouring the promise to stick to the game plan, delivering key services will remain a priority in the Annual Plan 2023-24, which was adopted by Council today.
Total capital expenditure will be $36million, of which $16 million is allocated to water service delivery (drinking water, stormwater and wastewater) and $7 million is allocated to roading renewal projects.
In addition, the Council has provided for a further $2.8 million towards the development of new water slides at the Hanmer Springs Thermal Pools and Spa to replace the current body slides that are approximately 25 years old.
The average rate increase has been set at 7.49%, higher than the 4.99% rate increase that was predicted in the 2021-31 Long Term Plan (LTP).
Chief Financial Officer Jason Beck explained that because this Annual Plan sits in the third year of the LTP, much of the structural work relating to the budget had already been prepared, therefore must be followed through.
He acknowledged community concerns that funding capital works on three waters will be happening through debt, amongst a time of high interest rates and inflation, but emphasised that Council remains committed to future proofing Hurunui District.
“Council has an obligation to meet timeframes set by Taumata Arowai, the regulator for water services across New Zealand and as a result some key projects have been brought forward into the 2023-24 year.”
Anticipated debt at the end of June 2024 is $71.5 million.
“When we set the budget for the LTP, we were in a very low period of inflation ranging from 2.5% to 3.0%.”
He added that Council has experienced a large increase to the cost of roading in the 2022-23 year and a further increase of 10% is required in the forthcoming year just to retain the current service levels.
Despite this, Council remains firm with its promise to continue to pay off the roading debt and has allowed for $916,000 repayment in this Annual Plan, budgeted for in the LTP.
“This will ensure that Council is in a better position to address roading issues in the preparation of the 2024-34 Long Term Plan.”
Council has taken steps to limit the rates increase, such as rationalising the expenditure on District Reserves, and maintaining its current $100,000 of rating for Earthquake Prone Buildings, down from $500,000 that was scheduled in the LTP.
It has also brought forward the increase of $400,000 to the dividend received from the Hanmer Springs Thermal Polls and Spa, of which approximately $330,000 represented the increase to the interest on the Internal Debt.
Mayor Marie Black thanked everyone in the District who provided feedback on the Draft Annual Plan in recent weeks, which she viewed as a vital part of the Annual Plan which was adopted today.
In a workshop earlier this month in Council Chambers, outcomes from the conversation and deliberation on the feedback resulted in some minor changes to the Annual Plan, which were approved by Council at its final budget meeting last Tuesday, 20 June.
Mayor Black said sadly Councils are not immune to inflation and high interest rates New Zealand is currently facing.
She said any further reduction in spend would create a reduction in core service delivery,
placing the District in a difficult position for the future.
“At Hurunui District Council, all spend is considered in depth and the small tight knit team works hard together to keep making our District better.”
By sticking to the game plan, Council is confident the District will be set for a positive future for key service delivery.
Two further documents were adopted by Council today.
One was the Waste Management and Minimisation Plan (WMMP).
The report of the Plan outlined that Council will continue its focus on improving the recycling performance and diverting waste to landfill, improve access to services for those not on kerbside collection routes, and look at options to reduce volumes of food and green waste to landfill over the next six years.
Council recognised that one size does not fit all, therefore local needs to best manage waste and recycling is a priority, through working with local businesses, organisations, and households.
Council advocates to support farm waste recycling events and schemes, and new waste and recycling technologies and initiatives. It may consider the implementation of a solid waste bylaw, to help set up standards and gather data to plan and manage waste better.
This is the third WMMP prepared by Council. The first was adopted in 2012, revised in 2014, and has been reviewed as part of this Plan.
Council also adopted all the Statutory Fees and Charges, which will take effect from July 1, 2023.
Statutory fees and charges cover a wide range of activities and Council services, from infrastructure to building consents, which are reviewed annually as part of the Annual Plan to ensure they are kept up to date and align with Council’s revised budgets.
Fees and charges occur to recover some or all the costs incurred when providing certificates, approvals, permits or consents, or carrying out inspections, where there is significant private benefit. If these costs are not charged to the user, the only other option for cost recovery would be through general rates revenue.
Some fees have increased, based on inflation data, and is in accordance with the Council’s Revenue and Financing Policy.
Website links for documents:
Annual Plan: https://www.hurunui.govt.nz/council/plans-and-strategies/annual-plans
Statutory Fees and Charges: https://www.hurunui.govt.nz/council/fees-charges/a-gen-info-on-fc
Waste Management and Minimisation Plan: https://www.hurunui.govt.nz/property-rates/rubbish-recycling/additional-information
