Higher rates on the cards for Hutt City

BY NICHOLAS BOYACK

Hutt City Council aims to increase its rates take by 2.6 per cent to a total of $82.68 million in the year beginning July 1.

That spells an average rates bill increase of 2 per cent for local homeowners.

The draft budget also means the council will stay under its debt target of $60 million by June 2011, but only by $15,000.

Councillors were warned of threats to the financial forecasts. The council remains behind budget on its programme to sell assets and with the cost of the Waiwhetu Stream flood protection work set to rise by more than $7 million, the final rates increase could be more than 2.6 per cent.

Key points in the draft 2010/11 community plan are:

* Deferring the $1.2 million new McKenzie Pool by a year.

*The possibility of delaying the planned $11.1 million upgrade of the Walter Nash Stadium.

*Introducing a targeted rate for the Central Business District to raise $350,000 to promote the Hutt downtown area.

*The possibility of bringing the target for the $30 million Making Places project forward from 2030. Funding of $1.7 million has been included for the proposed Civic Square project in front of the NewDowse for 2010/11, and $700,000 for the following year.

*Financial incentives to encourage apartment and commercial development in the CBD.

Council boss Tony Stallinger said Lower Hutt rates are lower per capita than similar councils. Research has shown that 10 years ago, Hutt City rates were 8 per cent above the council's peer average. Long term forecasts indicate Hutt City rates will fall a further 10 per cent against the average. Over 20 years, he said, that represents a major saving for ratepayers and is a reflection of the effort put in to keep rates under control.

Mayor David Ogden said he was pleased with the projected rates increase and he still favours a tight rein on council spending.

"It is easy to spend money but it is very hard to get it."

He said he was annoyed with the Greater Wellington Regional Council regarding the Waiwhetu Stream upgrade cost overrun and it was making life hard for the city council.

"They continue to amaze because they continue to trip themselves up ... they continue to get things wrong for our citizenry and to add to our costs."

The draft plan will now go out for consultation, with a final decision to be made in June.

The council is likely to come under pressure in a number of areas to add excluded items and not to further delay the Walter Nash Stadium upgrade and new McKenzie Pool.

Councillor Angus Finlayson said he was annoyed by the idea of delaying the stadium upgrade. The project has been on the books for years and another postponement could not be justified.

He was also annoyed a $210,000 project to resurface the Taita Netball Courts had been excluded. The courts, he said, are used by thousands of women and girls, and are in a "shoddy" condition.

Mr Ogden indicated he would like to see major projects like the Walter Nash Stadium upgrade funded from the reserve purchase and development fund. The fund comes from money collected from residential sub-divisions, and is currently used to purchase and extend new reserves, and for new capital projects on reserves. Changing this would represent a major change of policy and the council has sought legal advice.

A summary of the draft plan and questionnaire will be distributed in the Hutt News on April 20, with copies of the full plan available from the council's main reception, libraries and huttcity.govt.nz from April 19.

- Hutt News