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\nWhakat\u0101ne Mayor Nandor Tanczos. Photo \/ LDR<\/p>\n
Whakat\u0101ne Mayor Nandor Tanczos says the strikes on Iran and conflict in the Middle East could hit the council\u2019s coffers.<\/p>\n
The comments were made as Whakat\u0101ne District Council met to approve its draft annual plan budget for the coming year.<\/p>\n
\u201cThe immediate impact of that is likely to be a massive spike in oil prices and that will affect us,\u201d Tanczos said.<\/p>\n
\u201cThere\u2019s not much we can do about that but reiterate our concern to keep costs down and try to make things as affordable for our communities as possible,.\u201d<\/p>\n
The budget approval formalised what most of the council indicated to staff at a meeting on February 4.<\/p>\n
These were to use a reduction in costs identified for the upcoming year\u2019s budget, which would reduce the council\u2019s operating deficit rather than cutting the rates rise by 1.7%.<\/p>\n
The projected rates rise, as it currently stands, will remain at 9.4% rather than be reduced to 7.7%.<\/p>\n
It meant the council would borrow about $1.35 million less in the coming year than forecast in the Long-term Plan 2024-2034.<\/p>\n
\nWhakat\u0101ne Mayor Nandor Tanczos. Photo \/ LDR<\/p>\n
Finance general manager Paul Davidson said the council had made inroads into reducing its operating deficit.<\/p>\n
\u201cThe council made a decision last year to take $1.5 million into [balancing the budget] and this year there\u2019s an additional $1.35 million.\u201d<\/p>\n
This would see the council possibly returning to a balanced budget by 2029.<\/p>\n
The decision included a contingency fund, representing 0.7% of overall rates take, to allow for unforeseen interest rate rises.<\/p>\n
Though the decision passed with a majority, two councillors voted against the decision.<\/p>\n
Councillor Andrew Iles was alone in voting for the 1.7% savings to be offset against rates.<\/p>\n
\u201cWe\u2019re still living in this cost-of-living crisis. We\u2019ve got a war going on now, which is going to impact fuel prices, yet at the same time, we\u2019re asking our ratepayers to absorb those costs while we are applying more costs.<\/p>\n
\u201cWhat restraint are we showing as councillors to bring those costs down, so we can pass on some savings to our ratepayers?\u201d<\/p>\n
Councillor Gavin Dennis also voted against the decision, wanting to use the entire savings for reducing the deficit without any contingency fund being set aside.<\/p>\n
\u201cThe big elephant in the room is that deficit. If we don\u2019t get that down soon we\u2019re just punishing the following generation.\u201d<\/p>\n
Councillor Caroline Hamill said the council was showing concern about affordability by putting the funds toward paying off the deficit.<\/p>\n
\u201cThe only way we\u2019re going to get on top of it is to get our ship in order and getting our operating deficit down.\u201d<\/p>\n
Members directed staff to obtain cost estimates and develop a plan for the dredging of the Whakat\u0101ne River navigation channel, as requested by the Whakatane Yacht Club, so that could be taken into account when putting together the annual plan.<\/p>\n
Councillor Wilson James queried whether this should be covered by the harbour fund rather than rates funding.<\/p>\n
\u201cI think it needs clarifying, because, to me, the harbour fund is for the harbour, and we\u2019re starting to lose our harbour, which is a bit of a concern,\u201d James said.<\/p>\n
Chief executive Steven Perdia said there was further work to be done around whether dredging, which was an operational expense, should be done using a reserve fund and further decisions around that would be coming back to council.<\/p>\n
Councillor Lesley Immink said there was a historical agreement between the council and the yacht club to keep the channel clear.<\/p>\n
\u201cI still think that\u2019s part of our obligation.\u201d<\/p>\n
Deputy mayor Julie Jukes was alone in voting against obtaining cost estimates for the dredging.<\/p>\n
Staff also identified six further subjects that could affect the rates increase, which elected members would need to make decisions on before the Annual Plan 2026-2027 is adopted at the end of June and rates are struck.<\/p>\n
Further reports on these issues would be provided at upcoming meetings.<\/p>\n
Topics included advancing funding for the Rex Morpeth Recreation Hub project, how to use increased funding from the Ministry of the Environment\u2019s Waste Levy, options for the i-site location, purchasing of a licence plate recognition system for parking wardens, the potential need for a volunteer liaison role for Toi\u2019s track and transitioning three waters services to a new internal business unit.<\/p>\n
LDR is local body journalism co-funded by RNZ and NZ On Air.<\/p>\n
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