FNDC tightens its purse strings

"This is a year to refocus and reassess," Mayor John Carter said last week in announcing the Far North District Council's adoption of its 2014-15 draft annual plan.

The plan maintained the previous council's prudent approach, but tightened the purse strings, he said, providing for a "modest" 2.7 per cent increase in rates revenue, contrary to the 4.3 per cent increase in the long-term plan 2012-22. It also proposed end-of-year debt of $107.1 million, down from the LTP's $136.5 million, a $5.9 million nett operating surplus, up from $5.6 million.

The council would use that surplus to fund capital expenditure.

Mr Carter said the cautious approach reflected the district's slow recovery from the economic downturn, as well as uncertainty about the future of local government in Northland, which was expected to be resolved one way or the other by the end of the year.

The council had tried to keep its need for rates revenue to within local government inflation levels, but the impact on individual ratepayers would vary as a result of Quotable Value's revaluation of properties last year.

"We appreciate that property owners will be keen to know what rates and charges their properties could be liable for, so will make this information available on our website from March 10," Mr Carter said.

The council was also reviewing a number of inherited projects, including Kerikeri's proposed wastewater scheme. The previous council had decided last year to extend its sewerage reticulation network in Kerikeri, but since then the Auditor-General had published a report highlighting the need for councils to undertake thorough research on questions of affordability, and to keep communities well-informed when developing large, expensive infrastructure projects.

"We recognise the need to address with some urgency pressures on the Kerikeri wastewater treatment plant, which is operating at its limits," he added.

"We are re-evaluating all options, which may include upgrading and retaining the plant to meet current needs. But we must ensure that long-term decisions are based on a growth strategy for the Bay of Islands and the district.

"We will work with the community to find a new way forward, and will consult further about new proposals in our draft long-term plan 2015-25."

Other issues and projects covered in the draft annual plan included a proposal to develop a local alcohol policy that would control the location and number of bars and liquor outlets, while the council also planned to spend about six months working with the community to develop a vision that would give direction to a long-term growth strategy for the district.

"We are mindful that the structure of local government may be different at the end of next year, but it is important that we lay down a solid foundation for whatever the future may hold," he said.

A summary of the draft plan would be sent to households early next month, before a four-week consultation period began on March 17.

The plan would be finalised on June 26, after public hearings in May.