Rates are still the highest

The average rates increase of 1.98 per cent for Western Bay of Plenty District ratepayers will ensure that they continue to pay the highest rates of all districts in New Zealand. This 1.98 per cent increase will bring in an extra $1.3 million of revenue.

This is small change compared to what Council could save by operating more efficiently.

Last year WBOPDC's personnel costs increased by about $2 million so a salary and wages freeze this year would result in savings of about the same amount.

Although difficult to quantify, huge savings could be made by phasing out district-wide lump-sum contracts.

The agenda for the recent Performance and Monitoring Committee meeting provides a number of examples where savings could be made. For example, Council has long-term debt of $110 million which costs about $4.3 million a year to service. They have $34.6 million in term or call deposits paying an average of about 1.5 per cent interest from which they will receive approximately $0.5 million a year in interest. They could save $3.8 million by using this to pay down some long-term debt.

K Hay, Secretary Katikati – Waihi Beach Residents and Ratepayers Association

You may also like....

0 comments

Leave a Comment


You must be logged in to make a comment.