As Council heads into its 2006 to 2016 LTCCP process, recommendations from the TKMP Committee will see an average projected rates rise for the ward at around eight percent.
TKMP Chairman Mr Shamus Howard, calculated that, once inflation was added to the projected rates increase of 2004, the average increase in the TKMP ward was less than 1% higher than predicted. The 2004 LTCCP had forecast an average rates rise per property of 4.65% which, with inflation added at 2.5%, comes to 7.15%.
“Although it is never pleasant to be faced with a rise in rates, it is good that we are not too out of sync with those earlier predictions,” said Mr Howard. “Particularly when considering the significant rise in the cost of some of our major projects and additional costs associated with extra compliance requirements.”
The Committee discussed the matter at length but ultimately it was resolved, by five votes to four, to move forward with the recommendation to Council.
Mr Howard said the LTCCP will be released for consultation in early March and the public will be able to make submissions to Council on its plans for the future and associated budgets.
“The Committee has undergone a rigorous cost cutting exercise in an effort to reduce rates, but found the prospect of cutting levels of service any further unacceptable.” said Mr Howard.
Early debate centred around whether to use cash from future property sales to offset rates further, but it was felt that the current level of subsidy per ratepayer, in the TKMP ward from interest income which is sourced from TEL fund, was fairly significant and the Committee should look to the long term. Historically, money raised by sale of assets is used to acquire more assets. “Once you sell the silver, then its gone.” said Mr Howard.
Mr Howard asked that information regarding rates rebates which central government plan to bring into effect in July 2006 be publicised to ratepayers. The new policy will be of benefit to those on low or fixed incomes and will now allow those receiving up to $20,000 per annum to apply. This was previously capped at $7,400.
The level of rebate has also increased and the Hon. Helen Clarke has quoted the possibility that a single person receiving $16,645 in superannuation a year in 2006, will be eligible for a full rebate of $500 if their rates bill is over $1,000.
To view more about the 2006 to 2016 LTCCP click HERE.