Thames-Coromandel: Future of council offices uncertain as 13.2% rates increase proposed

The future of the Thames-Coromandel District Council building is uncertain. The council intends delaying a decision until December as it is seeking more advice.

Ratepayers are in for a 13.2% increase with millions of dollars removed from the proposed budget for refurbishment of the Thames-Coromandel District Council office building.

The proposed removal of $8.9 million budgeted for the refurbishment has been tabled for discussion on Thursday as the council prepares to adopt the 2024-2034 long-term plan.

The council has proposed a final decision be deferred until further investigations are completed on a proposed leasehold arrangement option, not included in the consultation document.

The investigation is expected to be reported back to the council before December.

The council has further resolved to include an additional operational budget of $35,000 in year one of the long-term plan (2024-2034) for the investigation of a new option for a leasehold arrangement.

That budget was to cover an investigation on one new site including geotechnical and land contamination investigations, and survey at an estimated cost of $20,000.

Also included was an independent assessment to understand the risks of remaining in the current council building on MacKay St, at an estimated cost of up to $15,000.

The proposed average total rates increase for the first year of the LTP had increased from 12.9% in the consultation document with Thames-Coromandel District Council expected to make a decision on Thursday.

Total capital expenditure over the next 10 years was now $744.7 million, an increase of $500,000 from what was initially proposed.

The $8.9m was taken from the proposed capital expenditure budget and $500,000 from the proposed operational expenditure budget while there had been inclusion of additional items totalling $2.5m in operational expenditure over the 10-year period (2024-2034).

There had also been inclusion of an additional $7.02m in capital expenditure projects and rephrasing of $2.45m in capital expenditure projects.

There had been 349 items of feedback received to matters raised in the consultation documents and 66 submitters appeared at the hearings last month.

A summary of changes to the LTP showed the council would increase fees and charges revenue in 2024/25 by 3% to help keep rates manageable.

The council also resolved to include three additional capital expenditure projects in the LTP which were not included in the consultation document or draft capex list included as a supporting document for consultation.

That included an additional $1.3m in the roading activity for year one for the Thornton Bay Slip stabilisation project (100% externally funded).

An additional $3.5m was added in the water supply activity budget from year four (2027/28) to year eight (2031/32) for an extension of the Hāhei water supply network, and an additional $2.1m in the rubbish and recycling activity budget over years one and two for replacement of the Whitianga transfer station.

Included in the additional operational expenditure was $100,000 added for governance activity in year one, to progress work requested by the chief executive liaison committee, to be funded from retained earnings, an additional $80,000 in corporate activity in year one to conduct an organisational benchmarking exercise, to be funded from rates, and an additional $60,000 per annum in district and strategic planning activity, starting in year one and ongoing, to establish and carry out surveys of external customer satisfaction levels across a number of council activities.