29 July 2016
Media Release

Tasman Pre-Election Report Outlines Key Issues

Tasman’s Pre-Election Report was published today. It sets out the key challenges facing the Tasman District now and into the future.

The Council’s chief executive is required to produce the report by the Local Government Act 2002 in order to promote public discussion of the issues facing the Council in the lead up to the local elections.

Council chief executive Lindsay McKenzie said the report outlines the Council’s current priorities and financial performance, its forecast financial position, and summarises the major projects that are either underway or proposed for the next three years.

“The size of Tasman District, our rate of growth, exposure to natural hazards and the spread of our communities provides a number of challenges for us to manage,” Lindsay said. “We have identified six key issues we believe will shape the future of the District.”

The six issues identified in the report are:
· Water security and supply

· Growth

· Natural disasters

· Rates

· Debt

· Maximising regional opportunities

Lindsay said the report indicated the Council was performing well ahead of its self-imposed rates and debt limits. Several factors were at play, including:
· Operational savings

· Fewer emergency works/clean-ups

· Delays to some capital works

· Greater debt repayment

· Low inflation

· Low interest rates

The report shows that, financially, the Council is performing much better than forecast.

“I gave the Council a heads up at the beginning of June that the surplus was likely to be much greater and the debt likely to be much lower than forecast. The variances between our forecast and actual financial position are explained by the factors I’ve mentioned. Our Annual Report 2015-16 hasn’t been prepared yet, but when it is, I expect these numbers will be confirmed.

“Because our budgets for 2016-17 were adopted and rates were set around 3 months ago, it’s too late to take advantage of this good performance in the current year. We operate closed accounts, so ratepayers will benefit from better-than-expected results in future years. Whether that is through reduced rates, repayment of debt, carrying surpluses forward, creating reserves or spending more is a matter for the future Council.

“I’m advocating a steady as she goes approach in the meantime. We still have some big projects coming up that we need to fund. Maintaining a strong financial position will allow us to meet our aims of keeping rates increases to a minimum, building our emergency fund in readiness for future natural disasters and reducing our reliance on debt.”

The Pre-Election Report can be viewed via the Council’s website, at tasman.govt.nz/elections, or pick up a copy at Council service centres and libraries.

ENDS

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