Mayor Andrew Tripe said the initial figure of 11.3 per cent was still unacceptable. Photo / Bevan Conley
Mayor Andrew Tripe said the initial figure of 11.3 per cent was still unacceptable. Photo / Bevan Conley
Whanganui councillors are in for some “very difficult discussions and decisions” if more savings are going to be found before this year’s rates increases are finalised.
After workshops specifically on the subject, Whanganui mayor Andrew Tripe said the projected rates rise this year is sitting at 8.4 per cent.
Tripesaid in December that initial rates calculations for 2023/24 were “in the high teens” in terms of a percentage increase.
But an activity and service review from Whanganui City Council chief executive David Langford and chief financial officer Mike Fermor came back with over $2 million in savings, lowering the projected rates increase to 11.3 per cent.
“That figure is in line with other councils, but in my view, it’s still unacceptably high,” Tripe said.
“I’m aware many people in our community are doing it tough right now so in light of that I asked staff to find further savings.”
Those potential savings aren’t public knowledge yet, but deputy mayor Helen Craig said there would be “very difficult discussions and decisions” involved.
Cuts suggested by council officers to get to the 8.4 per cent figure would impact services in the “nice-to-have” bracket, with at least two that no councillor would be happy to get rid of, Craig said.
“Some of those items would not be tolerated being cut by the community. We [councillors] are going away and thinking about it, and asking more questions.”
Craig said the council could trim the budget as much as possible but there would always be a very low tolerance for potholes and poor roading.
“It comes down to the basics, and you’ve got to keep spending money on that.”
Langford said the savings of over $2 million had been offset by rising interest rates, which had caused the additional expenditure of a similar number.
The second council rates workshop wrapped up this week. Photo / Bevan Conley
“In an organisation like ours which has over $100 million in debt, when the central bank puts up interest rates it flows through to us just like it does to people’s household mortgages.
“We are having to have what I call ‘stop, start, carry on’ conversations.
“What do you want us to carry on doing, what’s the new stuff people want us to start doing, and if we want to start lots of new stuff but we’re not willing to put our hands deeper in our pockets, what are the things we stop doing?”
“One of the main things our community should have some confidence in is there’s a lot of work going on behind the scenes to make sure the council is as efficient as possible and that we’re offering good value for money,” Langford said.
“We are leaving no stone unturned in terms of how we can keep rates low.”
In the council’s 2021-2031 long-term plan, the proposed rates rise for 2023/24 was 2.8 per cent.
Over the course of the plan, an average yearly rates increase of 3.2 per cent was proposed.
Langford said the work to get to those figures was done three years ago and didn’t include current inflation and new waste services that were consulted on in 2022.
The council’s limit on a rates rise was the inflation rate plus 2 per cent, he said.
“Obviously, that’s not a target, we want to bring it down as low as possible to just do the job at hand.”
Tripe said he would like a more transparent rates-setting process in the future so the community could understand the pressures councillors and staff were facing, and how they were navigating big issues and decisions.
“In recent weeks I have been able to indicate that external factors are putting pressure on rates to an unprecedented level – but because rates workshops are held behind closed doors, I have been unable to be more specific.”
‘Community Kōrero’ events are planned for February and March.
“This will be a chance to come along and chat with your mayor and councillors.
“We can talk about rates, as well as other key issues that are top of people’s minds. I’d encourage everyone to come along to meet us – we’re here to listen.”
The next rates workshop will be held in March.
Council officers will present any further savings they have identified for councillors to consider.
A draft annual plan is set to be released at the end of March for public consultation and the lodging of submissions.
A spokesperson from the office of Local Government Minister Kieran McAnulty said the MP’s office would “politely decline to comment” on this story.
