LTP 2024-34 FAQs

No, but we are not entirely financially sustainable… yet.

We bit the bullet last year with an 18.5% rate increase. We know this was unpopular, but it has put us in better shape than most as it gave us time to review our financial position and what needs to be done to be in the black in the short term and financially sustainable in the long term. There are still decisions to make and work to do.

The trajectory we are proposing – an 8.9% average increase for the first three years of the LTP), though years 4 and 5 will lead us towards an operational surplus by year 5 (2028-29). However, to reach financial sustainability, we will need to continue on the surplus path to year 10 to recover our significant underfunding of the past. We know for many it is hard to grasp but we are in an enviable position. Many councils are not able to achieve financial sustainability in the coming ten years.

It must be done to get us back on track.

Being ‘in the black’ means that we are able to fund our daily operating expenses from the revenue we get in from rates, fees and charges etc. We can stop borrowing to meet those day to day expenses.

Financially sustainable means that we will be able to put aside money to replace our assets (such as roads, water treatment plants) when they reach the end of their lives and are failing.

Our focus is to:

• Keep our business ticking along delivering what you expect.
• Continue our journey towards financial sustainability.
• Understand better where we need to prioritise spend, particularly on renewals of infrastructure that carries our stormwater, treats our grey water and provides our drinking water.
• Deliver a completely overhauled pool facility in Tokoroa.
• Continue to assess our services and facilities.
• Invest in infrastructure that supports new residential and business development.

Our Long Term Plan outlines what Council plans to do over the next ten years – and how it will be paid for.

It includes details about our services and activities, projects we have planned and when we’re going to deliver them, and issues and challenges facing our district and community. It tells you what your rates may look like for the next 10 years.

We have already been speaking with you about the development of our Growth Plan, Town Concept Plans and draft Vision and Goals. You’ve given Council some great feedback, which has helped develop the draft Long Term Plan 2024-34.

The 18.5% rate increase is designed to offer temporary relief. Despite this, the Council has always emphasised the necessity of making tough decisions to align expenditure with revenue and prioritise essential asset replacement and development. We have transparently projected a $4 million deficit for the 2023/24 fiscal year.

Yes, our Long Term Plan is independently audited to ensure we meet our obligations under the Local Government Act and that our financial information is reported to the community accurately. Council’s financial performance against the Long Term Plan is also audited and published annually through our Annual Report.

Maintaining and renewing aging infrastructure, particularly our three waters infrastructure.

Continuing our journey towards financial sustainability. Under our proposed plan we can achieve this in the life of the LTP.

Funding depreciation so that we can deliver infrastructure for now and future generations.

Rationalising our assets to deliver fit-for-purpose modern facilities that cater for the whole district.

We are proposing an average rate revenue increase for years 1, 2 and 3 of the LTP of 8.9%. In the medium term this will get us back in the black.

This is an average. Individual properties will be higher or lower. Due to much of the capital being spent on water infrastructure (drinking water, stormwater, wastewater) that are only delivered to townships, most urban properties will be higher and rural and lifestyle properties lower.

Council will be investigating this option. We must step up our water conservation game with new leak detectors, more commonly known as water meters.

Clean, safe drinking water is something we all enjoy, and something we shouldn’t take for granted. With the effects of climate change and population growth in South Waikato, it is important we have sufficient water supply for the district and that we all do our bit towards water conservation.

We’re signaling that water meters for urban properties on our water supply network will be coming within the first few years of this LTP. We need to step up our efforts to help spot leaks, save water and cut treatment costs.

Installing water meters is known to detect leaks, reduce water consumption, improve water conservation and reduce costs associated with the water supply network in the long run.

Our main source of income is rates. In this proposal 77% of our income comes from ratepayers. The remainder comes from fees and charges, subsidies and grants, development contributions and other smaller sources, such as investments.

Several important documents under-pin the LTP and all feed into the 10 year plan. These include our Asset Management Plans, 30-year Infrastructure Strategy, Financial Strategy, Growth Plan, Economic Development Plan and our Town Concept Plans.

Our total capital spend over the ten year period is $238 million. Just over half of this ($130.2 million) is in the three waters space. The remainder is spread across roading, community facilities, solid waste, property, economic and community development and parks and reserves.

We have around $12 million set aside for emergencies that may crop up.

In total $16.1 million. This doesn’t include overhauling the playground, which is an additional $150,000. The new pool facility will include:

• Renewed and upgraded toilets and changing rooms
• Retiling of pools and new concourse flooring
• Improved heating, ventilation and air conditioning units (HVAC)
• Modifications to internal walls, ceilings, doors and linings to be more modern and fit for purpose
• Upgraded public meeting room and creation of a second ‘function room’ for public use
• New sauna cold plunge pool
• New zero depth splash pad
• New plant and filtration systems

The pool facility has needed work for some time now. Maintaining the existing plant (pumps and filters) would be more expensive over this coming 10 years than replacing it completely. The new improved plant design will reduce current operational and maintenance costs.

Without these measures, the Council risks becoming financially unviable.

The Council is reviewing its policy on community contracts to ensure all community groups providing valuable services that align with Council goals are considered, not just the ones currently receiving support.

No current community contract funding will be abruptly discontinued. Staff have been engaging with groups to develop transition plans and discuss how they can apply for funding under any new policies.

Eliminating the deficit in one year would necessitate a 27% rate increase. The proposed plan aims to eliminate the deficit over four years. Maintaining or expanding all services would require either larger rate increases or continued deficits, threatening financial viability. To reduce rates by 1%, $350,000-$400,000 in service expenditures need to be cut.