The regional council portion of Rotorua's rates is proposed to rise by an average of 6.4 per cent.
Bay of Plenty Regional Council's annual plan is currently out for consultation and members of the council presented what was being proposed to members of the Rotorua Lakes Council's Strategy, Policy and Finance Committee this morning. Their presentation came just hours before the Rotorua Lakes Council agreed to put its own proposed 2019/20 Annual Plan out for public consultation.
Rotorua Lakes Council corporate planning and governance manager Oonagh Hopkins said the plan was a link between the Long-term Plan and the annual setting of rates.
"Nine months into the delivery of year one of the Long-term Plan, this becomes our opportunity to have a look at how we have progressed and what that might mean going forward into year two."
The district council is proposing a rates rise of an average 4.9 per cent, down on the 5.1 per cent proposed in the 2018-2028 Long-term Plan.
However, both its proposed capital project spending and borrowing are higher.
The Long-term Plan estimated the council would spend $76.2 million on capital projects and borrow $25.6m.
In its proposed annual plan it estimated spending $89.9m on capital projects and borrowing $41.4m.
Hopkins said some of the challenges in delivering the year one of the Long-term Plan included sourcing external funding, the condition of assets and resource consenting.
"Those challenges have meant that in some areas, in particular our major capital projects, they haven't advanced as quickly as we'd have expected."
Hopkins said this affected the capital project spend and borrowing as some projects would carry over to the next financial year.
"Borrowing is reflective of the capital works as well ... Based on carry forwards and the addition of an increase in the SHMPAC [Sir Howard Morrison Performing Arts Centre] funding we are proposing to borrow $41.4m."
The Rotorua Lakes Council's Annual Plan consultation document will be made public on Monday. Consultation is proposed to run until May 17 and the plan is proposed to be adopted by June 27.
The Bay of Plenty Regional Council's proposed Annual Plan has been out for consultation since March 18 and consultation closes on May 6.
Under the proposed plan the regional council's average rates increase would be 6.5 per cent, it would borrow $90m and spend $47.3m on capital spending as well as $135.5m on operating spending.
It asked four key questions: What actions the council should prioritise when it came to climate change, how the council should support safety and rescue service charities, if the public supported a bus trial to improve access to tertiary education and if the public supported a trial of fare-free bus travel for Tauranga school students.
The proposed rates rise was 1.2 per cent more than was forecast under the regional council's Long-term Plan and would equate to rates of $440 per household.