Rotorua draft Annual Plan approved for public consultation

Rotorua councillors Fisher Wang, Lani Kereopa, Rawiri Waru, Don Paterson and Trevor Maxwell. Photo / Laura Smith

It was with an apology from one councillor that Rotorua’s draft Annual Plan was approved for public consultation at a meeting today.

Rotorua Lakes Council’s draft Annual Plan proposes a 7.2 per cent rates rise.

But how this was set, and what spending will be impacted, won’t be released until consultation begins on April 11.

Consultation will focus on variations to the long-term plan, as well as the draft annual budget and the rates funding impact statement.

The draft plan allowed for a $138 million capital expenditure programme and $47m of borrowing.

The cost of living crisis was a key theme of the meeting as councillors and staff reflected on how it impacted both the community and the council.

District leadership and democracy deputy chief executive Oonagh Hopkins presented at the meeting and said if the council were to continue with what was set out in the long-term plan, an 11.95 per cent rates increase would have been needed.

There have been two council forums and one council meeting for elected members to discuss and debate the way forward. None have been open to the public.

Council staff provided options for councillors and the mayor to discuss and notes from these meetings, and details of what was proposed, will become publicly available on April 11.

Deputy mayor Sandra Kai Fong said the process had been rigorous.

Deputy mayor Sandra Kai Fong at the April 5 council meeting. Photo / Laura Smith

“We have gone and worked out needs and wants and screened that against priorities we set as councillors . . . we have all said we did not want business as usual.”

She said the higher rates option was not palatable to either the community or councillors.

Kai Fong had asked what the impact was for a 1 per cent rise or fall, and was told it equated to $1.2m of spending.

“It is about having some hard conversations with the community, we have tried the best we can to try reduce that rates rise as much as possible.”

Councillor Don Paterson was the only councillor to oppose the plan going out for public consultation, and was concerned with the proposed rates rise given the cost of living crisis.

“I feel we could have done better for our people and I apologise to the community wholeheartedly that I didn’t do anything about it until it was too late.”

Rotorua councillor Don Paterson. Photo / Laura Smith

It was with a “heavy heart” councillor Conan O’Brien supported the plan for consultation and said he wanted to make it clear he believed the 7.2 per cent rise was too much.

Councillor Robert Lee said the decisions throughout the process had not been easy and not all councillors were wholly happy with what was proposed. He expected there would be changes made to the plan, and the challenge was there for the community to provide feedback

Councillor Fisher Wang said rates setting often drew controversy.

He said the council faced similar issues that businesses and the community faced. He said it came down to balancing costs and benefits to the community while bearing in mind investment.

He had concerns with certain proposals and said impacts were often not seen until after implementation.

“Im supporting this so we can hear from our community directly.”

Consultation closes on May 12 and hearings will be held at the end of May.

- Public Interest Journalism funded through NZ on Air