A yearly rates increase has been proposed to cover the loss of revenue from the Rotorua Museum closure.
An average 3.8 per cent rates rise proposed for the 2017/18 financial year includes a 0.5 per cent targeted rate to cover the revenue shortfall caused by the unexpected closure of Rotorua Museum.
For the museum recovery rate it is proposed every rateable property be charged an additional $14.20 per year - the same for everyone regardless of capital values.
The rate would apply only until the museum re-opens.
The alternative is to fund the shortfall, about $400,000 per year, through the general rate which would result in an average 1 per cent rates increase for each rateable property based on capital values.
The 3.3 per cent base rate increase was required to fund growth and critical projects and reduce debt over the long term, Rotorua Lakes Council chief financial officer Thomas Colle said at today's full Rotorua Lakes Council meeting where the mayor and councillors approved an annual plan public consultation document.
Mr Colle outlined decisions and proposals elected members had approved for inclusion in their proposed 2017/18 annual plan following a series of workshops during the past few months.
The 2017/18 year is year three of the 2015-25 Long-term Plan and the annual plan focuses on changes to that along with matters which council is seeking public feedback.
The final annual plan will be adopted in June following submissions and hearings.