A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.
Gisborne district councillor Isaac Hughes has queried whether the abolition of resource consent fees could encourage the building of houses.
Cr Hughes raised that question as councillors, sitting as the finance and performance committee, approved the draft 2022-2023 annual plan.
The draft annual plan sets an average rates increase of 6.5 percent, which is consistent with the council's long-term plan and with public consultation.
Cr Hughes asked if the council would be better off “in the worst-case scenario” of wiping the fees, carrying the financial burden and encouraging the development of housing.
He accepted there would be a financial impact.
Council chief financial officer Pauling Foreman estimated such a policy would cost the council at least $650,000.
A principle of council's revenue and financial policy was that council costs be imposed on those who gained the benefit in a user-pays system, rather than by the rating system, Ms Foreman said.
Someone had to pay. If it was not through fees and charges, it would be by charging ratepayers.
Cr Hughes said that by reducing barriers to building houses, the council could potentially increase the rate “take”.
Cr Tony Robinson queried whether consents were an actual barrier to the rental property market or whether they were another “one of the death by a 1000 cuts” in the housing sector.
Council director of environmental services and protection Helen Montgomery said consents were only a small part of the cost in building a house.
A consent for a $500,000 house would cost about $3000, she said.
Mayor Rehette Stoltz said Cr Hughes had raised an issue worth discussing when the council looked at its revenue and finance policy.
The draft annual plan was consistent with the Long-Term Plan (LTP), she said. There were no significant changes.
a. Completion of the wastewater treatment plant upgrade improving the water quality in Turanganui-a-Kiwa/Poverty Bay.
b. Completion of Kiwa Pools.
c. Working in communities and providing more from external funding from Waka Kotahi/NZ Transport Agency in — completing the Uawa Cycleway (up $229,000); completing more than was planned for township upgrades (up $235,000).
d. Continuing the acceleration of the delivery of the Waipaoa River Flood Control Scheme.
e. Continuing to increase resources to be able to meet statutory obligations with resource consents and the council's environmental stewardship role.
f. Continue to focus on building blocks such as regional plans, climate change, the environment, and working with partners — tangata whenua and communities — “to deliver to get to where we need to be for the future”.
The LTP financial strategy set a maximum rates cap of 6.5 percent plus growth for the first three years and debt less than 130 percent of revenue.
The draft 2022/2023 annual plan is consistent and within the financial parameters of year 2 of the LTP and “what was consulted with our community”.
Overall rates increase 6.5 percent (LTP 6.5 percent).
Forecast external debt of $136m (LTP $133m)
Capital Expenditure Programme of $77,643m (LTP $79,573).
Council fees and and charges have “predominantly” increased by the rate of inflation used for year 2 of the Long-Term Plan, which is 2.82 percent.
The Olympic Pool: Fees have remained static due to disruptions to service due to the age and deterioration of the facility. New fees will be recommended to the council for Kiwa Pools before the facility opens in 2023.
Library fees for overdue returns: The fee has been removed as a growing number of New Zealand libraries find such fees are a deterrent for some library users. Other evidence shows return rates increased when fine-free policies are introduced.
Cr Pat Seymour said she had received public feedback about the cost of burial plots. She accepted that inflation-linked increases were fair.
The cost of a Taruheru Cemetery plot increases from $1162 to $1195, and interment fees (Monday to Friday) from $556 to $572.
Cr Seymour said the fee charged to community and volunteer groups to use Lawson Field Theatre was still expensive, even if only half the cost charged for professional performers.
■ The draft 2022-2023 fees and charges will be available for public consultation in March and April. The plan, fees, charges and rates will be set on June 23.
The council will not consult by means of face-to-face meetings. Council chief executive Nedine Thatcher Swann said the council would use social media and The Gisborne Herald.