Waikato Regional Council has approved an annual budget of $197.6 million, representing an increase in total rates revenue from current ratepayers of 5.8 per cent for 2023/24. The increase exceeded the 1.6 per cent forecast in the council’s 2021-2031 Long Term Plan (LTP).
For the majority of ratepayers it will mean an increase in rates this year of between $50 and $95. But the remaining five per cent of ratepayers could see higher increases based on their property value and whether they pay targeted rates.
Chair Pamela Storey said the council faced a lot of tough choices in setting the budget, with inflation-driven costs, a drum-tight labour market, and the ongoing need to attract and retain skilled staff to give effect to an ambitious programme, as well as central government reforms driving cost pressures.
a lot of tough choices in setting the budget
“Costs are going up across the board,” Cr Storey said. “Households feel it. Businesses feel it. These pressures on our communities were at the absolute forefront of councillors’ minds when setting this budget and that really came through in the discussions we had.
“Economic conditions have changed dramatically and at pace. This is impacting everything from borrowing and procurement to insurance premiums and labour market costs, with these external pressures alone driving an increase of $7.53 million compared to our LTP forecasts.”
Councillors were presented with a number of options to achieve budget savings, including deferral of the EcoRetrofit sustainable homes scheme, and work associated with the rollout of freshwater farm plans pending national direction.
Consideration was also given to whether hardship-related rates remission agreed by the previous council in response to COVID-19, and a Warm Homes Clean Air scheme for the Tokoroa airshed – for which uptake had slowed in recent years – should continue. Councillors agreed to continue with both, but reduced the amounts funded.
Chief Executive Chris McLay said “In the last year or so, the world has changed on us with costs rising for councils just as they have in the supermarket and at the petrol pump. We were facing potential increases in the double digits but, thanks to the hard work of staff and difficult decisions made by councillors, we’ve been able to mitigate those impacts as much as possible while still maintaining our ability to deliver for our communities.”
Councillors also heard proposals for limited additional spending in high-priority areas, including options for greater investment in iwi Māori engagement and customer experience, that had the potential to drive efficiency savings and improved services over time.
A business case was also put forward for the regional expansion of Total Mobility – a subsidised door to door transport service for people with disabilities. Councillors discussed delaying the $324,000 funding injection for a year, but it was passed in a majority vote of 7-6.
A decision on the funding of Muggeridge’s pump station debt repayment will be put back before council on 23 February. However, it has been included in the budget and would not increase the overall rating impact, councillors heard.
With the council sticking closely to the programme agreed through the 2021-2031 Long Term Plan, none of the changes to the annual budget have triggered the requirement for consultation or community engagement.