Rates rises not on: Chadwick

Rotorua's mayor Steve Chadwick.

Rotorua ratepayers are facing what Mayor Steve Chadwick is calling unreasonable and unsustainable rates increases from the Bay of Plenty Regional Council.

The regional council is proposing 10 per cent, 9.5 per cent and 20 per cent rate increases over the next three years in its Long Term Plan (LTP), which sets out the regional council's direction for the next 10 years.

Mrs Chadwick said the increases would be unsustainable in combination with rates increases the Rotorua council would impose, which were likely to be in the vicinity of 5 to 10 per cent for the next year with future rises tied to the rate of inflation.

The Rotorua Lakes Council will decide what that increase will be at a council meeting on Thursday.

At a regional council Long Term Plan submissions hearing held in Rotorua yesterday, Mrs Chadwick said the value Rotorua was getting back from the regional council was not clear.

"We've got to understand the level of investment. Across the next three years your plan projects a 10 per cent, 9.5 per cent and 20 per cent rates rise for Rotorua. We believe these are neither reasonable nor sustainable for the community.

"We note that since 2001/2 the regional council rates intake from Rotorua has moved from $2.035 million to $8.5 million. That is an average in excess of 14 per cent per year during this period".

But regional council chairman Doug Leeder said his council received $8 million in general and targeted rates from Rotorua, yet spent more than $20 million in the area.

"The big-picture items are in there - air quality in Rotorua - is that the problem of the Whakatanes, Opotikis or the Western Bays? The difference between $8 million and the $20 million that we spent has to come from someone else.

"For every $1 Rotorua rate payers pay they get $1.50 back."

Mrs Chadwick was supportive of the "important functions regional council provides around water quality, air quality and for the geothermal management and provision of public transport," but wanted to collaborate with the regional council in order to get the best value for money.

She suggested Rotorua Lakes Council and the regional council provide a single service centre for people who were not sure if an issue was related to the district or regional council, and to have the regional and district council chief financial officers meet.

Bay of Plenty Regional councillor Jane Nees questioned what projects Mrs Chadwick would want to cut in order to decrease rates.

"Rotorua lakes or Rotorua air, or insulation or the public bus system? Do you believe insulation is core?" she asked.

The regional council will adopt its Long Term Plan by June 30.