Mayor's Memo

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28 Mar, 2022

Kia ora,

Even lower expectations for KDC rates in the 2022-23 Annual Plan year, commencing 01 July, are now firmly on the cards as Council gets closer to its June finalisation of what will be in the Annual Plan. In the last 12 months, the rates prediction has shifted up and down:

· LTP June 21 projected rates increase for 22/23 = 7.13 percent

· December 21 briefing indication = 8.76 percent

· December 21 Council decision = 7.57 percent

· March 22 briefing indication = 7.13 percent with staff soon to complete the financial forecast for current Financial Year to assess starting point and hopefully positive impacts on next Annual Plan (and the general rate) in June 22.

Since December Councillors and I have continued to seek further cost-savings and reductions in the forecast rates increases, noting that there are many staff vacancies at present and costs are different after two years of officers mainly working from home during the Covid Pandemic Response period. But rates affordability remains a priority for us, no matter the season.

When it comes to rates increases, it’s not as simple as picking a number and then trying to back-fill what services Council may or may not deliver to fit. Government continues to make new regulations which Councils must comply with, with new costs to be met by ratepayers. A current example is that from July the new water regulator Taumata Arowai will be in place. After July, meeting different standards, for example paying for the addition of chlorine to drinking water supplies, which Government has decided rather than District Health Boards, will be forced onto ratepayers. There’s no way Council can avoid those imposed costs, and factors like this add up to a forecast 17.74 percent targeted rate increase for people connected to Kaipara District Council water supplies. Eye-watering, but largely beyond Council’s control. Council is doing everything it can to reduce costs while meeting standards and maintaining service level expectations across the entire Council business, including our excellent teams for Resource Consents and Building Consents plus the District Plan Review people having been crying out for our rapidly growing Kaipara. This is a real balancing act, especially in the current inflationary environment. In the next few months there will be hard considerations made for the Annual Plan 22/23 ahead, with decisions in June, and any rates changes will be part of this. Expect further reductions.

Some things go down while others go up. On track for completion in the next few weeks are the following key projects:

· Kaiwaka Footbridges official opening

· Waipoua River Road sealing project completion

· Pouto Road Phase One sealing project completion

· Northland Regional Council’s completion and opening of the new shared Council building in Dargaville.

A bountiful season is ahead, make the most of the ups and the downs the season brings.

Nga mihi,
Mayor Jake
Dr Jason Smith, Mayor of Kaipara District

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