Council savings help cut rates

Tasman district ratepayers won't be digging into their pockets as much as they thought for the coming financial year.

Councillors yesterday pruned back projects to be included in Tasman District Council's 10-year plan, trimming the initial general rate projection of a 4.96 per cent rise to 3.9 per cent for the 2009-10 year.

The projected average annual general rate has also reduced slightly from a 4.32 per cent rise to 4.2 per cent over the next 10 years, mainly a result of the council swapping its interest rate from 7.9 per cent to a long-term fixed rate of 7.2 per cent, said chief executive Paul Wylie.

The decrease was also a result of squeezing costs across the board.

"The council had maintained the thrust of the draft plan to a very large extent, but wherever it can, we have squeezed out small savings and sometimes these savings have been reallocated and other occasions been applied to keeping the rates down," Mr Wylie said.

Because interest rates had "moved significantly" since the draft 10-year plan was put together, councillors took advice that it would be "prudent" to adjust the interest rate and budget, Mr Wylie said.

Council strategic development manager Susan Edwards said other reasons for the decrease in the general rate included moving the $80,000 library management software upgrade from the 2009-10 budget to 2011-12.

A reallocation of $86,000 usually paid out of the general rate for loan servicing on the Nelson Provincial Museum will now come out of the targeted museum rate.

During 2010 to 2012, the general rate will be reduced after councillors decided to cut funding to the planned public transport service between Richmond and Nelson.

Around $400,000 was budgeted for the service in 2011-12 and $600,000 in 2012-13. Now, the service will receive $120,000 each year between 2010 and 2019, and $60,000 this year.

Projects which the council received the majority of its 4500 submissions on were also significantly changed, including the introduction of a blanket targeted tourism rate, which will see $137.21 charged to all tourism-related businesses.

The $3.1 million planned for the proposed Rabbit Island watersport facility in 2012-14 was also axed, as well as the proposed multi-bin kerbside collection service, proposed in the draft plan to start in 2012.

The decision for development contributions to be collected on a district-wide basis was confirmed, but will be cut from initial projections of $22,948 to $20,394 per unit.

The council will put $60,000 towards a storage space for the Tasman Bays Heritage Trust to store assets from the Nelson Provincial Museum.

Councillors agreed to apply for a Government subsidy for the Motueka township reticulated water supply which is proposed to cost $17.4m and start in 2012, and agreed to include the Lower Motueka flood control proposal, subject to further public consultation on the design.

Mr Wylie said councillors had worked hard on their decisions.

"Some people had individual concerns, but overall they were reasonably happy with what we were trying to do. There was a good understanding of the need to spend on the infrastructure that keeps the district alive and growing.

"If there's one big thing in the plan, it's spending on infrastructure that will maintain and allow the district to grow. It's not the amount of borrowing that matters it's what you spend it on that matters.

"If you spend it on infrastructure that will last for decades and grow the district, then it's a sound investment. In some ways we are trying to catch up, but want to do it (infrastructure work) gently over a long period of time."

- © Fairfax NZ News