EW rate rise warning
By BRUCE HOLLOWAY - Waikato Times Last updated 05:00 05/06/2010
Environment Waikato has settled on a 2010-11 rate rise of 2.12 per cent for existing ratepayers, but some councillors are warning low rises are unsustainable.
Many regional councillors ended annual plan deliberations in Hamilton this week on the self-congratulatory note of having kept the rate rise below the consumer price index in recessionary times.
But the striking of the 2010-2011 rates also came with a warning from some quarters that any further pruning of essential council services in pursuit of keeping rates down would be unsustainable and counter-productive.
The final rates-take figure was based on $200,000 being budgeted to come from new ratepayers – a figure finance manager Mike Garrett said was "ultra, ultra-conservative" – and an end-of-year surplus of $495,000.
However councillors Paula Southgate, Andra Neeley and Laurie Burdett tempered general pleasure at the end result with words of caution that many of the savings came through one-off actions such as repealing the annual discount for early payment, or severe pruning of services such as pest management.
"It was a very good result given the difficult financial times," Ms Southgate said.
"We came through only disagreeing on rats-and-mice amounts."
But she was concerned that in spheres such as transport, the council could not avoid sustaining cost rises which were far in excess of the consumer price index.
"This would not be a sustainable approach in the long run," she said.
Ms Burdett said this year's $495,000 savings on operations could not be repeated.
Meanwhile, in her final annual plan comment before retiring in October, Ms Neeley said the final rate strike was a good result given the constraints.
But she warned that it left major questions for future councils if savings were made on the basis of vital work not being done.
"There is huge pressure out there," she said.
"In terms of water management, and catchment issues – our bread-and-butter stuff – there are still big challenges."
Councillor Jane Hennebry said the small rate rise was "a good result" considering the CPI ran at 2.5 per cent.
Chairman Peter Buckley was also satisfied.
"There has been a lot of pressure going on us as a council with the river settlement and pressures from central government.
"It has been an arduous but enjoyable journey."
In final debates over expenditure, councillors Southgate and Neeley successfully battled to have $70,000 recommitted to North Waikato pest control operations which had been heavily pruned.
Councillor Tony Armstrong failed in a bid to add an extra 10 cents to children's bus fares to save $50,000 of ratepayer subsidies of the passenger transport targeted rate.
EW's rates will be at the present GST rate of 12.5 per cent, because they will be dated before the GST rise to 15 per cent on October 1.
EARLY-BIRD RATES REBATE SHOT DOWN
Ratepayers will no longer get a discount on their Environment Waikato bill after the regional council decided to ditch its early-bird discount to avoid a 1.54 per cent overall increase in rates.
Councillors, during the 2010-11 annual plan deliberations on Wednesday, said the decision was justified because ratepayers were already funding the discount.
Of the 312 submissions on the proposal, 70 per cent opposed the discount being scrapped.
The enormous success of the early-bird rebate has resulted in 72 per cent of ratepayers taking advantage of the 2.5 per cent rebate at a cost of $1.4 million in lost rates.
About 28 per cent of ratepayers who did not take up the discount were being levied an additional $286,000. The other $250,000 was covered by interest earned on the early payments.
EW group finance manager Mike Garrett said the discount was not self-funding and cost council more than $1m this year.
Councillor Andra Neeley was "blown away" by the public's resistance.
Councillor Simon Friar agreed with all councillors, except Norm Barker, that it was the best move: "I'm quite sure a lot of those people who responded in opposition didn't understand they are paying the vast amount of the money they are getting back from us."
But Mr Barker was not convinced that in the global economic situation it was the right time to drop the discount.
Late payers will face the maximum penalty of 10 per cent in July for the previous year's rates and another 10 per cent in November for the current year's unpaid rates. The present penalty is 5 per cent.
Rates will be due on October 31.
By BRUCE HOLLOWAY - Waikato Times Last updated 05:00 05/06/2010
Environment Waikato has settled on a 2010-11 rate rise of 2.12 per cent for existing ratepayers, but some councillors are warning low rises are unsustainable.
Many regional councillors ended annual plan deliberations in Hamilton this week on the self-congratulatory note of having kept the rate rise below the consumer price index in recessionary times.
But the striking of the 2010-2011 rates also came with a warning from some quarters that any further pruning of essential council services in pursuit of keeping rates down would be unsustainable and counter-productive.
The final rates-take figure was based on $200,000 being budgeted to come from new ratepayers – a figure finance manager Mike Garrett said was "ultra, ultra-conservative" – and an end-of-year surplus of $495,000.
However councillors Paula Southgate, Andra Neeley and Laurie Burdett tempered general pleasure at the end result with words of caution that many of the savings came through one-off actions such as repealing the annual discount for early payment, or severe pruning of services such as pest management.
"It was a very good result given the difficult financial times," Ms Southgate said.
"We came through only disagreeing on rats-and-mice amounts."
But she was concerned that in spheres such as transport, the council could not avoid sustaining cost rises which were far in excess of the consumer price index.
"This would not be a sustainable approach in the long run," she said.
Ms Burdett said this year's $495,000 savings on operations could not be repeated.
Meanwhile, in her final annual plan comment before retiring in October, Ms Neeley said the final rate strike was a good result given the constraints.
But she warned that it left major questions for future councils if savings were made on the basis of vital work not being done.
"There is huge pressure out there," she said.
"In terms of water management, and catchment issues – our bread-and-butter stuff – there are still big challenges."
Councillor Jane Hennebry said the small rate rise was "a good result" considering the CPI ran at 2.5 per cent.
Chairman Peter Buckley was also satisfied.
"There has been a lot of pressure going on us as a council with the river settlement and pressures from central government.
"It has been an arduous but enjoyable journey."
In final debates over expenditure, councillors Southgate and Neeley successfully battled to have $70,000 recommitted to North Waikato pest control operations which had been heavily pruned.
Councillor Tony Armstrong failed in a bid to add an extra 10 cents to children's bus fares to save $50,000 of ratepayer subsidies of the passenger transport targeted rate.
EW's rates will be at the present GST rate of 12.5 per cent, because they will be dated before the GST rise to 15 per cent on October 1.
EARLY-BIRD RATES REBATE SHOT DOWN
Ratepayers will no longer get a discount on their Environment Waikato bill after the regional council decided to ditch its early-bird discount to avoid a 1.54 per cent overall increase in rates.
Councillors, during the 2010-11 annual plan deliberations on Wednesday, said the decision was justified because ratepayers were already funding the discount.
Of the 312 submissions on the proposal, 70 per cent opposed the discount being scrapped.
The enormous success of the early-bird rebate has resulted in 72 per cent of ratepayers taking advantage of the 2.5 per cent rebate at a cost of $1.4 million in lost rates.
About 28 per cent of ratepayers who did not take up the discount were being levied an additional $286,000. The other $250,000 was covered by interest earned on the early payments.
EW group finance manager Mike Garrett said the discount was not self-funding and cost council more than $1m this year.
Councillor Andra Neeley was "blown away" by the public's resistance.
Councillor Simon Friar agreed with all councillors, except Norm Barker, that it was the best move: "I'm quite sure a lot of those people who responded in opposition didn't understand they are paying the vast amount of the money they are getting back from us."
But Mr Barker was not convinced that in the global economic situation it was the right time to drop the discount.
Late payers will face the maximum penalty of 10 per cent in July for the previous year's rates and another 10 per cent in November for the current year's unpaid rates. The present penalty is 5 per cent.
Rates will be due on October 31.