Enhanced Annual Plan 2024/25

Buller District Council’s recommendation for a 14% increase in total rates for the 2024-2025 financial year was adopted at the full council meeting yesterday, as part of the Enhanced Annual Plan 2024-2025.

The Draft Enhanced Annual Plan and related consultation document was adopted by council on April 10, 2024 and made publicly available for consultation from April 12 to May 20, 2024.

Deliberations held on June 11 and 12, 2024, resulted in a reduction of the proposed total rates increase from 19.7% to approximately 14.6%. This indicative rate informed the preparation of the final Enhanced Annual Plan document.

The proposed general rates portion of the increase is 7.24%. Key drivers include increases in external loan interest due to higher interest rates and facility fees, the NZTA roading programme net of higher funding from NZTA, and in contractors' costs and insurance.

These increases are partially offset by a rise in external investment income and a reduction in the general rates requirement due to revenues from the Paparoa Way leasehold properties.

Additionally, employee remuneration costs have increased by $816k compared to the 2023-2024 budget, funded through a mix of general rates, targeted rates, external revenue sources, and capital project budgets. This is purely the expense figure, however some of these costs are offset from funded revenue.

Since the adoption of the 2021-2031 Long-Term Plan in June 2021, council has employed new staff to help maintain its levels of service and business as usual activity while meeting increased demand for those services, to resource council’s increased programme of work and to ensure it meets statutory and new requirements for local government. Cumulative salary market movements have also been greater than predicted at the time the Long-Term Plan was prepared.

The proposed targeted rates portion of the increase is 6.73%. This includes increases in interest expenses due to higher forecast interest rates and debt levels, contract review costs for wastewater and water supply schemes, and increases in depreciation due to infrastructural revaluation gains and unplanned works funded by external grants.

This is offset by $0.9 million in net capital costs previously funded by rates in the Long-Term Plan, which are now supported by loans in the Annual Plan. A significant impact to the rates movement for 2024-2025 was the decision to hold water rates for 2023-2024. This made up 5.2% of the total rates movement.

This rate increase will take effect for the 2024-2025 rating year. The proposed adjustment is seen as necessary to ensure continued service delivery, infrastructure maintenance, and compliance with statutory requirements.

The new net debt limit for the council of $36.9 million will exceed the net debt limit of $25 million set in the financial strategy. This is due to an increase in overall costs and the ongoing requirements as highlighted previously.

As part of the setting of the budget, council agreed to endorse a review of the general rate differential system in line with the Long-Term Plan 2025-2034. A budget of $100,000 has been included for these activities.

Council also considered the Draft West Coast Regional Speed Management Plan. Council adopted the “Do Minimum” option with amendments based on community feedback. The amended plan for Buller includes a number of changes to speed limits, including zones around schools that apply on school days at set times.

Council also adopted a set of key performance indicators (KPIs) for Chief Executive Officer Simon Pickford. These indicators allow council to measure the CEO’s performance and focus on significant decisions that have come out of the Enhanced Annual Plan deliberations and other key tasks.

These include leading the development of the next Long-Term plan, reviewing the rating system for water and wastewater charges and reviewing the general rating differential system.

Sitting alongside these indicators are other overarching long-term indicators relating to health and safety, risk management, cultural awareness and customer satisfaction.

Council acknowledges the Buller community’s significant contribution to this consultation process, in terms of both time and effort given by individuals and community groups.

We understand the very real challenges the community is currently facing with the rising cost of living and going forward, will do all that is possible to balance delivery of essential services with affordability.

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For further information please contact:

Buller District Council
Community Engagement Team

media.enquiries@bdc.govt.nz

Buller District Council has successfully concluded its deliberations on the 2024/25 Draft Enhanced Annual Plan.

The draft plan documents were adopted at an Extraordinary Council Meeting on 10 April 2024 and made available for public review.

Following an extensive consultation period from 12 April to 20 May 2024, plus an extension of time for submissions on the water and wastewater rates changes to 4 June, the community was invited to present their feedback in person during public hearings held between 5-7 June.

Throughout the consultation period, council actively engaged with the community. Public drop-in sessions and meetings were held across various locations, information was presented in the district-wide Connect newsletters and an online survey portal was established to facilitate the submission of feedback.

This extensive engagement process ensured that the council received a wide range of perspectives and insights.

In response to the feedback received, council has made several key decisions.

It has been decided to continue levying rates for water and wastewater services from 1 July 2024 on the same basis as currently implemented.

Additionally, the proposed rating system for water and wastewater services will undergo a review for possible inclusion in the Long-Term Plan 2025-2034.

This review will consider the principles of the Government’s Local Water Done Well policy, the proposals in the Draft Enhanced Annual Plan, and the submissions received during the consultation period.

Council will also review any objections to the Rating Information Database received until 30 June 2024, along with any other objections brought to its attention.

This review aims to ensure that all concerns are addressed comprehensively. Furthermore, the council is committed to developing remission policies where appropriate.

In another significant move, council will review the general rate differential system to consider potential changes as part of the Long-Term Plan 2025-2034. From 1 July 2024, the Uniform Annual General Charge (UAGC) will increase from $550 to $580.

Grant requests for the next financial year and the agreement on council’s contribution towards the district’s roading programme were also decided on.

Additionally, the methodology for calculating the management fee payable to Buller Recreation Limited will be documented, commencing 1 July 2025. This step aims to bring clarity and transparency to the process.

Acknowledging the impact of rates increases on the community, council understands the financial challenges faced by residents.

During the deliberations held on 11 and 12 June 2024, a notable reduction in the proposed total rates was achieved, dropping from 19.7% to 14.6%. This reduction aligns with council’s commitment to financial prudence and responsiveness to community feedback.

The new indicative rate will guide the preparation of the final Enhanced Annual Plan document, which is scheduled for adoption on 26 June 2024.

These outcomes demonstrate council’s dedication to transparency, fiscal responsibility, and addressing the needs and concerns of the community.

The final Enhanced Annual Plan will continue to ensure the delivery of essential services and infrastructure maintenance, reflecting council's commitment to serving its community effectively.

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For further information, please contact:

Community Engagement Team
Buller District Council

media.enquiries@bdc.govt.nz

Buller District Council will come together next week to consider 623 submissions on the Draft Enhanced Annual Plan 2024/25.

So far, an additional 17 submissions have been received since 20 May during the extended submission period for the proposed changes to wastewater and water rates, which runs until 4 June.

Eighty people have chosen to speak to their submissions during the three days of hearings scheduled for next week.

Mayor Jamie Cleine says: “623 submissions is the largest turnout we have seen for a consultation in recent years. The submission numbers were significantly increased by a local group that collected and dropped off 396 submissions.”

Our focus for the coming week will be to listen to all speakers and review the submissions so we can understand people’s concerns, suggestions and feedback.”

The two key issues for the consultation were how council would respond if Waka Kotahi—New Zealand Transport Agency (NZTA) does not continue to provide the current level of funding and how council will rate for drinking and wastewater in the future.

174 submitters answered the consultation question regarding funding for roading. 55% of the submitters indicated they would favour reducing the programme to match the NZTA-approved level of funding. 9% preferred that council continue with the programme already submitted, and for rates to fund any difference required for local roads, committing to higher rates for the next two rating years. The option to keep council’s level of funding as contained in the draft plan but reduce the overall programme to reflect Waka Kotahi’s level of investment was chosen by 36% of submitters.

188 submitters indicated their preference regarding the proposed changes to how council rates for drinking water. 70% opted to keep the policy on how water and wastewater targeted rates are charged the same. 30% preferred council adopting a revised policy on how water and wastewater targeted rates are charged.

Mayor Jamie Cleine highlights “It has been an enormous task to collate the submissions, analyse the data, summarise the feedback and organise the hearings.”

Councillors are aware that affordability is one of the key themes of the comments made from the community.

The Draft Enhanced Annual Plan's total general and targeted rate increase is 19.7%. This is an average, and the consultation document included information about how individual rates for certain properties would change. This number also includes the proposed water and wastewater policy change.

Mayor Jamie Cleine says, “We understand that many people feel the pressure of increased costs when paying for basic living expenses. This is expressed in many submissions. However, we have to make a decision that considers the needs of the entire community, enables us to operate in a financially sustainable way, encompasses long-term planning and recognises future generations.”

Councils across the country are facing double digit rates increases, impacted by the escalating costs that are required to deliver what our communities need, as well as shouldering the additional duties necessary to ensure compliance with central government requirements.

After the hearings, council will discuss the draft plan during the deliberations and make any necessary changes to the Draft Enhanced Annual Plan 2024/25.

The Enhanced Annual Plan 2024/25 will be adopted at the 26 June council meeting and be effective 1 July 2024.

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For further information, please contact:

Buller District Mayor
Jamie Cleine
Jamie.Cleine@bdc.govt.nz

Buller District Council will hit the road over the next three weeks to have a chat with the community about the Draft Enhanced Annual Plan 2024/25 and the Zone One rubbish collection consultations.

Buller residents are invited to attend the drop-in sessions to meet their councillors and council staff. These sessions are an opportunity to learn more about council’s proposed services, activities and financial strategies for the forthcoming year and the changes council is proposing for rubbish collection in Zone One.

The two consultations are open for members of the Buller community to express their views between 12 April and 20 May. This timeline is designed to ensure that everyone has ample time to consider the proposals and provide thoughtful feedback.

Consultation 1: Buller District Council's Draft Enhanced Annual Plan 2024/25 is a one-year plan and part of council’s longer-term planning process. It provides an overview of council’s proposed services, activities, and financial strategies for the forthcoming year. Council has identified two key issues council wants the community’s feedback on to find out which option is the best way forward. Council also welcomes feedback on any other aspect of the draft plan.

Consultation 2: Council is proposing changes to the way that rubbish collection services are delivered and funded in Zone One from 1 July 2025. There are four options that the community is invited to give feedback on.

Mayor Jamie Cleine emphasises: “People’s input, as members of our community, is of utmost importance as council plans for the future of our district. The drop-in sessions are designed to allow us to meet with people and answer their questions, enhancing residents’ understanding of these topics. We encourage everyone to get involved so that their submissions are well considered.”

To make it easy for people to participate in these drop-in sessions, councillors and council staff will tour the district between 26 April and 14 May 2024. Eight drop-in sessions will be held at community facilities around Buller, both during the day and in the evening. Drop-in sessions will be held in Karamea, Northern Buller, Westport, Charleston, Reefton and Ikamatua.

“It’s important that people are well-informed, make a submission, and have their say. This gives council an indication of the options the community favours, which will be considered when we make decisions on both topics in June.”

Residents can have their say by filling out an online feedback form or grabbing a paper copy from council’s offices and libraries in Westport and Reefton, or at the service and resource centres across the district until Monday 20 May.

Drop-in session dates, times and locations

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For further information please contact:

Buller Mayor Jamie Cleine
Jamie.Cleine@bdc.govt.nz

The Buller District Council decided to defer adopting its 2024 – 2034 Long-Term Plan (LTP) at yesterday’s council meeting.

Council will defer adoption of the 2024-2034 LTP by 12 months, to June 2025, and instead adopt an enhanced Annual Plan for the 2024-2025 financial year. A reduced nine-year LTP will be produced for 2025 – 2034.

Read more in our Media Release.