Plan would see 7 per cent average rates rise

An upgrade of facilities in Kuirau Park, which could include a Japanese-style steam kitchen and viewing towers, are also part of the proposed plan. Photo / Stephen Parker

Rotorua ratepayers face the prospect of a 7 per cent average rates increase for the coming year as part of the Rotorua Lakes Council's Long-term Plan.

The proposed plan sees the average business rate increase by 11 per cent, farm rates up 19 per cent, residential rates up 6 per cent and rural residential rates up 8 per cent.

The remainder will be covered by higher targeted rates for water, waste water and refuse.

The Long-term Plan sets the council's budgets and strategic direction for the next 10 years and will go out for public consultation next week.

The decision was made at a council meeting last night.

Along with the proposed one-off rates increase - rates for the remaining nine years would be calculated based on the rate of inflation - the council is also proposing to get rid of weekly rubbish bag collection and replace it with kerbside rubbish and recycling bins emptied fortnightly.

Plans are also proposed for a $15 million refurbishment of the Aquatic Centre, the demolition of Community House, the creation of a new council-controlled organisation to be called Rotorua Contracting, the establishment of a child health and library hub with the Lakes DHB and a new performing arts hub based in the Sir Howard Morrison Performing Arts Centre.

An upgrade of facilities in Kuirau Park, which could include a Japanese-style steam kitchen and viewing towers, are also part of the proposed plan.

The one-off rates increase was explained as a reaction to low and unrealistic rates increases in previous years.

Rotorua mayor Steve Chadwick said previous rates increases were "a bit of a fool's paradise" and the increase would help balance the books for the coming years.

The plan states previous decisions on rates "were made at a micro level to achieve a desired outcome without understanding the wider financial implications. The result of this has meant council has not had a balanced budget for the last three years."

Councillor Mike McVicker said he had reservations about such a big rates increase in the plan's first year, considering an election was due in late 2016.

Councillor Charles Sturt said the plan was "the best organised and most informative document the council has produced in my 25 years on council".

He accepted the rates increase was justified and would do a lot to balance the books.

"We have trimmed all the fat we can off the organisation, there are very few avenues we can go down to make any more savings," he said.

Long-term Plan proposals

•A 7 per cent average rates increase for the coming year
•Demolish Community House - relocate tenants
•The introduction of kerbside waste collection
•A $15 million refurbishment of the Aquatic Centre
•Creating a new council-controlled organisation - Rotorua Contracting
•Creating a new performing arts hub
•Establishing a child health and library hub with the Lakes DHB
•Upgrading facilities in Kuirau Park

What do you think?
Email editor@dailypost.co.nz, write a letter to PO Box 1442, Rotorua or text OP (message) to 021 242 4568.

Copies of the new consultation document for Rotorua Lakes Council's next long-term plan, and submission forms, will be available from the council's Customer Centre and district library within the next week, and from www.rdc.govt.nz.

Anyone making a submission can opt to speak to the mayor and councillors in support of their submission at a series of public hearing being held on 25, 27 and 28 May.

Submission close on 20 May 2015.