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Home / Bay of Plenty Times

Bay of Plenty Regional Council staff salaries set to rise 7.9 per cent despite projected $11.2m deficit

Kiri Gillespie
Kiri Gillespie
Assistant News Director and Multimedia Journalist·Bay of Plenty Times·
22 Jun, 2022 05:00 PM2 mins to read

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Regional House at Bay of Plenty Regional Council's offices on Elizabeth Street. Photo / George Novak

Regional House at Bay of Plenty Regional Council's offices on Elizabeth Street. Photo / George Novak

Bay of Plenty Regional Council is pursuing plans to increase staff salaries by 7.9 per cent despite forecasting an operating deficit of $11.2m.

The regional council also seeks to increase general rates by 5.8 per cent, translating to about $21 extra for an average property.

In a report presented to the council during Annual Plan deliberations on May 18, council staff recommended the increases as a result of guidance and direction from Draft Annual Plan workshops.

Whether these go ahead will be decided on as part of the adoption of the Annual Plan 2022/23 today.

Changes from the council's second year of the 2021-2031 Long-Term Plan to the draft Annual Plan for 2022/23 include an increase in employee expenses from $47.4m to $52.3m, including a 7.9 per cent rise in staff inflation.

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The report stated the increase involved a pay negotiation which included the record Consumer Price Index inflation of 6.9 per cent plus one per cent in accordance with the collective employment agreement.

The report noted that general inflation increased "faster than expected".

It also stated unemployment was lower than expected, making it more difficult to find suitably qualified staff.

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However, it also listed lower public transport fares, a lower Waka Kotahi NZ Transport Agency subsidy, and higher interest rates as reasons affecting a total operating revenue of $160.7m while the total operating expenditure was $178.5m.

In addition to the increased pay for staff, the report recommended an estimated general real rates increase of 5.8 per cent, and a targeted real rates increase of 0.9 per cent. These contributed to a total real rates revenue increase of 3.8 per cent for the 2022/23 year.

The report stated the planned rates increase reflected the council's "ongoing commitment" to rates affordability through "prudent financial management and sustainability".

In another agenda for today's meeting, released this week, a report stated there was an unbalanced budget for 2022/23, which required a specific resolution by the council.

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However, this unbalanced budget was consistent with the approach confirmed by the council through the Long Term Plan 2021-2031.

It also highlighted a capital expenditure of $34m and an operational expenditure of $175m.

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