Thursday 5 February 2015

Rates Stop Press




Rates Stop Press

For the first time Council has agreed to set a target rate first and to cut our cloth to fit. It was Unanimously passed when a division was called.

"
ITEM 54 MOTION ON NOTICE – COUNCILLOR HEWITSON RE RATES MOVED Councillor Hewitson SECONDED Councillor Hughes That: in framing the 2015/16 Budget, council requests the Administration to provide options and their implications within the target rate of up to the average LGPI for the past five years average plus one %.

If followed through a rate increase will be half of the amount above inflation over the past 10 years.

Dear Colleagues,

Celeste from the Eastern Messenger gave me a call to say that another Councillor has claimed that motion 54 about rate rises would make no difference as the staff have now a long termed plan for LGPI plus 1%.

In response I sent the attached data to Celeste to show the difference it would make if we as elected members stick with a rate rise of up to LGPI plus 1%.

I explained to Celeste that our council without a target rate rise can approve projects and then set the rate afterwards. Money is unlimited? Without the motion being followed through by the Council, the rate could be way above the 3.92% maximum.

This years rate rise would be up to 3.92% if set now because from the first attachment the LGPI average over the past five years is 2.92%. This already 1% below the increase of 4.95% last year.

 Over the years covered in the attached graph the increase in rate rise would have been 30% less. If we follow through over the next four years with a target rate to approve new projects we will need to review our prior expenditure. Money is limited and our expenditure valued and focused. Much more with just little more.

With my good wishes
                             Michael

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