The average proposed rate increase for 2011/12 will stay under 3 percent in the Queenstown Lakes District, QLDC general manager finance and deputy chief executive Stewart Burns said.

The Council consulted on the draft Annual Plan during April and May and deliberated at hearings earlier this month. The Council will be asked to adopt the plan with a proposed average rate increase of 2.81%.

“Council received a total of 403 submissions by the closing date, compared with 273 in 2010/11, Mr Burns said.

Clearly a hot issue was road gritting which counted for 280 (just under 69.5%) of responses, with 262 taking the opportunity to submit on road oiling and 257 and 237 respectively on the issues of increased user fees for waste management and repayment of debt.

The Council also consulted on the issue of debt repayment with 184 submissions (78%) in favour of debt repayment. Annual Plan budgets allow for significant debt repayments over the next year with just over $8m provided for. This has been possible through a combined approach of increased rate funding and applying the expected dividend from QAC ($2.7m) to reduce debt.

“The Council is extremely grateful to those members of our community who took the chance to have a say on things that mattered to them. Every submission was considered by the Council, although some tough decisions had to be made,” Mr Burns said.

Council did, however, make a number of changes to the budgets as a direct result of the submission process. Road gritting would be carried out to the same extent as previous years, with an agreement from the New Zealand Transport Association to fund additional costs this year.

Other decisions included

• Approve a one-off grant to establish a Queenstown Lakes District Heritage Trust of $5,000.
• Approve funding assistance of $30,000 over two years to celebrate 150th Anniversary of the discovery of gold in Otago.
• Provide $25,000 to allow for purchase of a district-wide economic model.
• Increase the trail maintenance budget by $20,000 for increased maintenance on QLDC mountain bike trails.
• Approve a one-off grant to Upper Clutha Historic Records Society of $2,000 towards memorial wall project in the Wanaka Cemetery.
• Provide $25,000 to Shaping Our Future process to allow for visioning component.
• Bring forward $180,000 Capital budget for Stage 1 of the extension to Wanaka Skate park (assumes $60,000 to come from local fundraising).
• Bring forward $10,000 Capital budget for Norski Toilet at John Creek Hawea.
• Bring forward $10,000 Capital budget for Hawea Foreshore improvements.
• Approve a one-off capital grant of $120,000 for project to extend the Hawea Community Centre.
• Allow $200,000 capital budget for possible Cardrona land acquisition.

Other changes had been made to reflect internal submissions, including:

• Cost adjustments to reflect correction of budgets or updated information for electricity costs, and 3 Waters (water supply, stormwater and wastewater) maintenance (decrease $169,167).
• Cost adjustments to reflect correction of budgets or updated information for insurance costs, and councillor remuneration (increase $37,478).
• Increase Sundry Revenue by $2.7m to reflect receipt of QAC Dividend and increase loan repayments by $2.7m ($1.3m District Plan and $1.4m Admin Loans) reduce Interest expense budget by $131,625 to reflect reduced debt.
• Increase budget for Wanaka Town Centre Improvements by $25,000 for implementation of CCTV in association with Queenstown project.
• Bring forward $30,000 Capital budget for Glendhu Bay Boat Ramp.

“The combined effect of these changes is that the overall average rates increase (after allowing for growth) has increased very slightly from 2.74% to around 2.81%. Holding the rates increase at this level has been difficult because of the many requests for additional funding and the fact that growth in the rating base for the year is less than expected,” Mr Burns said.

The Council will be asked to adopt the 2011/12 Annual Plan on 28 June, 2011.

ENDS

For further information please contact Stewart Burns 03 441 0499.

By: Andrea Bunting