Annual Plans are prepared in the years between each Long Term Plan (LTP). These plans set out what we propose to do that year, how much it will cost and how we will fund it.

Once the LTP is in place, the Annual Plan process continues, but the focus is on year-to-year budgets.

The Annual Plans produced in the intervening years support the Long Term Plan, and their primary purpose is to provide the base for setting and assessing rates.

Consultation took place between 14 March and 21 April and Council received 787 submissions and 1,005 associated submission points from submitters. Hearings were held on Tuesday 6 May, with 23 submitters heard.

Residents provided a say on:

• Considering the best arrangement for Local Water Done Well, the reform of Three Waters services. The best option for our community has been determined to be a stand-alone business unit of Council. Council will continue to investigate joint arrangements between the business unit and neighbouring councils. This is essentially the same as we have now but meets the new Government legislative requirements.

• Responding to a NZ Transport Agency funding shortfall: A $13.5m gap for roads and transport over three years

• The impact of increased asset values: Higher valuations of roads, reserves, and water plants drive up depreciation costs. These increases in value result in hikes in costs of depreciation and insurance

• Council also sought input on rates remission for secondary dwellings as well as our Development Contributions policy.

The 2023/24 Annual Plan

The plan lays out a responsible budget which will allow council to continue to deliver a high level of service, while also keeping rates increases to a minimum.

Council has committed to a rates increase of 6.24 % which is slightly higher than the proposed rate of 5.97% in the Draft Annual Plan. However, it still sits significantly lower than the inflation rate of 6.7% (formerly 7.2% at the time the Annual Plan was drafted). It also means our District has had one of the lowest rates increases in the country.

The reason for the rates rise is because Council has decided to fully fund the shortfall of $220k to the unsubsidised roading maintenance budget. The majority of respondents to the Annual Plan requested Council fully fund the gap.

Central Government funding, through Waka Kotahi’s contribution is capped and does not take account of inflation. The addition of the $220k to the budget took the total average rate up to 6.24%.

Road maintenance is high on the priority list for residents and the Council wants to ensure it keeps up and meets those expectations. Council has also recently employed staff to undertake independent reviews to ensure that all roading work is meeting the quality and specification required in the terms of the contract.

Some of the key issues in the Annual Plan include:

1. New regulations mean Council must test water supplies more regularly and potentially bring forward planned upgrades to remain chlorine-free
2. Immediate improvements need to be made to the stormwater network following flooding from extreme weather events
3. Inflation is affecting roading costs, and more is needed to make sure local roads remain at a high standard.