Annual Plan 2020-21

There have been no further decisions about costs over and above the $388,000 contribution that Council committed to in March 2019. Elected members would need to consider and make final decisions about any variation to Council’s contribution. The cost of scaffolding is incurred by Kilwell as part of the overall contract with Council

Chris,

Thanks for the question about speaking with Elected Members. With NZ moving to Alert Level 1 we feel comfortable having face-to-face meeting/engagement. We still ensure that we perform the correct contact tracing as per the level 1 guidelines: https://uniteforrecovery.govt.nz/covid-19/covid-19-alert-system/alert-level-1/ 

Thanks!

We have tried to answer these as best as I can as follow:

Why is the housing budget so low compared to other items?

Rotorua Lakes Council is just one partner in terms of development of the housing strategy for Rotorua. We have allocated $300,000 for the next 12 months towards development of Locality Plans (see page 12 on the Annual Plan Consultation Document) and Infrastructure. Longer term it is likely that further spending will be required from Council (and others). This would be a part of the Long Term Plan that will be developed in the next year.

Is the wastewater into the lake pending environment court decision?

Yes, the application for a consent to discharge treated wastewater to the lake is with the Environment Court. However, this is a separated issue/conversation that the current Statement of Proposal to contract out the delivery of Councils wastewater operations which is in the Annual Plan 2020/21 on page 9.

Would it not be fair to charge people for actual consumption as oppose to capital value of your home?

There are limited ways in which a Council can charge rates that fund Council and the delivery of it services. A large number of Councils services fall under the 'basket of services' that are available to everybody and no one has exclusive access to these. These are funded by the general rate which is mainly charged relative to the capital value of a property. Some of our services (e.g. water, wastewater, refuge/rubbish) are charged where this is a strong/direct link between the ratepayer and the service provided. In most cases, the property charged with a targeted rate has exclusive access to the service – hence, we are charging the consumer of that service. 

For further information on rates and understanding your bill: www.rotorualakescouncil.nz/rates 

What is happening with the homeless?

The Housing Strategy also has a number of actions to work on the issue of homelessness and housing supply across all levels of housing continuum (page 10 of the Annual Plan). In the short term just prior to COVID-19 lockdown Ministry of Social Development moved almost all homeless people to motels for lock down. This arrangement has been extended and they are working to get people into either transitional or permanent housing. 

Kia ora Christie,

Thanks for the question and rates can be a little confusing. We'll try to answer your questions as specifically as we can and as simply as we can - for further rates information please take a look here - www.rotorualakescouncil.nz/rates 

Rates are made up of two portions:

1. General rates - These fund a 'basket of services' that are available to everybody and no one has exclusive access to.
2. Targeted Rates - In most cases, the property charged with a targeted rate has exclusive access to the service (e.g. Water, Sewerage, Household refuge etc).

The Annual Plan 2020-21 proposes on average across our district 0% increase in the General Rate (This varies a little from property to property) and an average across the district of 4.7% in Targeted Rates (This varies a little from property to property depending on the services received)

As you have calculated a 5.8% for your property. I'm assuming you likely live in residential Rotorua and receive a number/all targeted services. Targeted rates will likely explain a significant portion of the increase in your case. All targeted services have a proposed increase for 2020-21 as follows:

While the General Rate has a proposed 0% increase, this is an average across our district and varies a little from property to property.

Hope that helps and happy to answer further questions!

We are sorry as we don't understand where the figure of $279 million is from? 

At the end of this financial year (30th June 2020) debt is expected to be approx $226 million. For the Annual Plan 2020/21 Council is proposing that debt will rise by approx $57 million (total of $283 million) in response to a number of the actions as detailed in the Annual Plan. At the moment we have considered adjustments to the timing of certain projects beyond 2021 to minimise the lift in our debt levels and stay under our self-imposed debt limit.

It would be worth noting that the Annual Plan 2020-21 is the plan for the next 12 months. The graphs on on debt talks about a longer view of debt. Discussions beyond 2021 will become apart of the coming Long Term Plan 2021-24. 

This is the graph on debt from the Annual Plan Consultation Document

Thanks for the questions – have answered specifically to the two questions as follows:

A1. Council is always keen to explore positive partnerships that benefit the community and help progress the district toward the goals outlined in Vision 2030.

At a high level an number of larger proposed projects in the current Annual Plan talk about partnerships with Government and Iwi as these projects have sort funding via Crown Infrastructure Projects fund ('Shovel ready'). A number of existing projects (e.g. Museum, SHMPAC) have partnership funding from a number of sources. A lot of our work is Involves/Collaborates at a variety of levels with community/interest groups/businesses to help achieve quality outcomes.

A2. Council has previously put in place ‘self-imposed’ debt limits. These self-imposed limits are based off Council revenue (2.25 times annual revenue) and provide a clear guide as to what is prudent and appropriate levels of debt for Council have. 

The Fitch Rating system that Council currently maintains a strong AA- rating with, utilises a different metrics to calculate its rating. There is no direct link between our self-impose debt ceiling and Fitch ratings. The next Fitch rating will be done in 2021 and is reviewed annually. 

The future modelling graphs in our current Annual Plan consultation document don’t anticipate Council breaching of the self-imposed ceiling of 2.25. It would be worth noting that the Annual Plan 2020-21 is the plan for the next 12 months where the presentation on debt talks about a longer view of debt. Discussions beyond 2021 will become a part of the coming Long Term Plan 2021-24.

Thanks for the questions!

Thanks for the question. The graphs you refer to from the Annual Plan forum were also apart of a Council Meeting on the 19th May - the presentation from the meeting is available here plus the accompanying live stream from the Council meeting for the accompanying explanation. Council debt is apart of the presentation at approx 1h 41m mark. 

It would be worth noting that the Annual Plan 2020-21 is the plan for the next 12 months where the presentation on debt talks about a longer view of debt. Discussions beyond 2021 will become apart of the coming Long Term Plan 2021-24.

Thanks

Thanks for the question.

Couple of options:

1. Email to: letstalk@rotorualc.nz   or;
2. You could use our online feedback form. Either copy the feedback into the form and/or add a digital attachment to the form.

Nga mihi, the Lets Talk Team.