Tēnā tātau katoa - warm greetings to you all on behalf of Te Kaunihera o Kawerau | Kawerau District Council
Thank you for your support since the new Council took the oath of office last October to serve you, our community. Te Kaunihera o Kawerau welcomes you to the draft Annual Plan for the upcoming financial year starting 1 July 2023 through to 30 June 2024. An annual plan is completed in the years between the long term plan, which we will start working on later this year, for the next 10 years from 1 July 2024 to 30 June 2034. This annual plan endeavours to balance the needs and wishes of the community, with the aspirations and resourcing of Te Kaunihera o Kawerau.
Our Wero | Challenge
These are challenging times. When Council set the Long Term Plan 2021, we had forecast a rates increase of 3.5 percent for the 2023-2024 year. Since then, the economy has become more difficult. Global issues such as the pandemic and international conflict are affecting the availability and supply of goods. These external influences, are affecting our high inflation and interest rates.
Council’s annual budget includes many fixed costs relating to the supply of services and facilities to the community. We have had to look at ways to reduce the overall rates increase, especially after last year’s jump due to the loss of our biggest ratepayer. To manage the rates increases in 2022, we adjusted the differential from 45 percent residential to 48 percent and to 52 percent commercial/industrial. This differential will remain in place in 2023-2024.
This year we are looking at a new approach to keep the rates increases to a minimum and believe we have come up with a viable short-term option.
This document outlines how we plan to fund less of the depreciation costs in the coming year to lower the rates increases and balance increasing costs. This gives some time, until we can expect a more stable economy where inflation and interest rates ease.
We warmly invite you to attend one of our engagement hui, to ask questions and provide feedback.
Kahika | Mayor Faylene Tunui and Tumu Whakarae | Chief Executive Russell George
Kōrero Mai | Talk to Us - Make a Submission available here.
Your rates pay for a lot including services and facilities
Overview of how Council proposes to set the rates for 2023-2024
Council appreciates that the rising cost of living is hitting the community and businesses hard.
Initial budget estimates during our Annual Plan 2023-24 process, showed a rates increase of 13.9 percent due to:
►Projected $550,000 surplus in the Long Term Plan 2021-2031 from Central Cove development not available contributing 4.6 percent;
► Increased Operating Costs: Personnel 3.8 percent; Solid Waste 2.0 percent; Long Term Plan audit 1.0 percent; Other (incl. building compliance audit) 1.3 percent;
► The Long Term Plan anticipated a 2.9% increase in depreciation. However, the revaluation of assets was much higher rising by $18.8m, increasing depreciation by 22.9% or $758,850, contributing 3.8 percent to the rates increase.
