Council surplus to reduce proposed rate rises

Due to unexpectedly high returns on financial investments, Environment Southland is planning to put forward $1 million to reduce proposed rate increases in its Long-term Plan 2015-2025.

The Council had signalled increased activity leading to an increase in rates for the first three years of the Long-term plan. However, the extra funds are expected to reduce the proposed rate rises from 7.74% to about 5.5% ($755,000) in 2015/16; from 6.42% to about 5.5% in 2016/17; but result in an increase from 4.85% to about 6.5% in 2017/18.

Councillors today heard and considered the 84 submissions received on Environment Southland’s Long-term Plan consultation document, Southland’s Big 3.

The consultation document was delivered to Southland mail boxes in April. It presented Environment Southland’s proposed work programmes and budget for the next 10 years and highlighted the significant issues and change: water quality, air quality and an increased focus on biodiversity. Most submitters either endorsed or were neutral about Environment Southland’s proposals.

Environment Southland Chairman Ali Timm’s said Southland’s Big 3 enabled people to see the issues and what the Council proposed to do, and that people’s submissions were helpful to the Councillors’ decision making today.

Additional requests to the Long-term Plan:

Aeromagnetic survey
Councillors agreed to further consider Venture Southland’s request for $343,000 to go towards the extension of the aeromagnetic survey of Southland in its Annual Plan 2016/17.

The amount is 50% of the costs of the programme. Venture Southland has committed $100,000 to the survey and is seeking further funding from local stakeholders, including councils in order to maximise the potential benefits accrued from savings in mobilisation, scale, technical capability and leverage from the government’s $6 million programme for three regions, one of which is Southland.

The survey could provide useful information that would further inform Environment Southland’s science programme for water quality, including fine-tuning the physiographic boundaries. However, councillors wanted more information before making a decision and because the amount requested hit the $300,000 trigger in our Significance and Engagement Policy, it would need to go out for public consultation and could not be dealt with by the Long-term Plan process.

Coastal clean up
Councillors agreed to provide $10,000 a year to the Coastal Cleanup Group, which had requested up to $20,000 annually. The money will come from within existing budgets.

Hollyford predator control
Councillors agreed to the Hollyford Conservation Trust’s request for an annual contribution of $5,000 towards the overall cost of its predator control programme in Fiordland for an initial three year period. It will be funded from within existing budgets.

Otago Rescue Helicopter Trust
Councillors rejected the Otago Rescue Helicopter Trust’s request for an annual grant of $163,000 based on $1.75 per capita of Southland population because they didn’t have enough detailed information to make an informed decision.

Ballance Farm Awards
The New Zealand Farm Environment Trust asked Environment Southland to join the Ballance Farm Awards at a cost of $10,000 per year. However, councillors agreed to support it for one year only and then would assess its value. The $10,000 will be funded from surpluses.

Southland Santa Parade
Councillors decided against funding a request from the Southland Santa Parade Trust for $2,500 per annum to cover 50% of road closure costs because it was not part of our core business.

Also considered today – the Revenue and financing policy review:

Oreti River rating – ‘local’ share (15/16 year)

Currently landowners with the Oreti rating district have been expected to meet 30% of the costs of works carried out on their properties as a local share contribution. However, some landowners have not been prepared to pay it because they were not the sole beneficiaries. As a result, Councillors today agreed to shift the local share costs away from affected ratepayers. This means an increase to the Oreti catchment of $107,659 per year; and an increase to the general rate of an additional $40,120 per year.

The Council also endorsed a reduction in the dairy differential rate as outlined in the Revenue and financing policy review; and changes to the user charges under the Resource Management Act. Both were outlined alongside the Long-term Plan proposals inSouthland’s Big 3.

All changes will be incorporated into the draft Long-term Plan, which will go to a Council Meeting for approval.

ENDS

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