Rates to rise more than 8%
Taupō District Council has confirmed a draft average rate increase of 8.4% for the 2025/26 year to be confirmed following consultation in June.
Tuesday afternoon’s full council meeting heard from senior policy advisor Kendall Goode that this was 0.1 per cent higher than forecast in the Long Term Plan 2024-34,
However, she said it could have blown out to 10.2% due to unplanned increases of over $2 million in essential business costs, like software licenses, insurance, finance costs, depreciation and contracts for solid-waste, security, and cleaning services.
An additional $296,000 was also required to satisfy new levies and reporting requirements to the Commerce Commission under the government’s Local Water Done Well reform, her report noted, which was additional to the $498,000 budgeted.
The meeting heard that a review of budgets and work programmes had resulted in council officers proposing reductions of about $1.88 million to achieve the 8.4% figure.
These included cuts to training, the use of consultants, materials, and supplies as well as a 20% reduction in funding to Destination Great Lake Taupō for a second year.
Kendall says the trade-offs will “not materially impact baseline levels of service” but some planned activities and services are delayed until next year.
As well as thanking staff for bringing the rates increase back into line, councillors like Danny Loughlin, Sandra Greenslade and Rachel Shepherd expressed some concern about the delay to projects detailed in Goode’s report.
As he had with a discussion earlier on water reform, Duncan Campbell jumped to signal he would not be voting for the proposal – just as he hadn’t with the last LTP.
He had perceived an absence of critical thinking, he said, in some of the infrastructure spending, “including the unexamined $70 million transport items, still pending, without the fully agreed to workshop some 10 months ago.”
This references a figure of $76.9 million budgeted over 2024/25 – 2030/31 for a second bridge over the Waikato River, but the LTP 2024-34, does not have discussions on that scheduled until 2027, when design options are available.
As he had in the earlier discussion on water reforms, deputy mayor Kevin Taylor felt compelled to counter Campbell’s assertions.
There was significant detail provided in the spending review, he said.
“To say that no critical thinking has gone into this is a misrepresentation of the facts I’ve got right in front of me … There will be some frustration and pain out in the community because things that were expected to be delivered will not be delivered and there will be delays.”
Of the $70 million reference, Taylor said: “I do know what he's talking about, but that is on the long-term plan, one long term plan hence, nothing in this plan has anything to do with a $70 million transportation project at all and to leave that unresponded to would be a disservice to anybody listening to this. That project is still in the very, very early planning stages.”
John Williamson also felt some of Campbell’s contributions were inappropriate to time and place.
“I would perhaps suggest if you’re going to stand for re-election, keep that to your political campaign in a couple of months’ time.”
The resolution, moved by Taylor and seconded by Yvonne Westerman, passed with all but Campbell in favour.