It would appear that the councillors will be able to shortly announce just a modest rate rise for the 2012/13 financial year, but an increase all the same which is, in my view, still disappointing.
As advised by Cr Faulkner the increase has been kept to a relatively low level due to a reversal of the decision to alter the water charging basis and also a significant drop in interest rates which has resulted in the Council's interest costs, on its $350 million plus of debt reducing.
However inevitably in the future interest rates will once again increase from the historically low levels that they are currently at and this should be of concern. Due to the huge debt that this Council currently has just a 1% increase in borrowing interest rates will result in a minimum of a 4% increase in overall rates so imagine the position should average borrowing interest rates increase by 2% which in the future is quite possible.
Rather than being satisfied with just a relatively low rate rise the councillors of 2012 should be planning, for the future, and endeavouring to reduce the overall rate cost basically in anticipation of them increasing when borrowing interest rates once again rise as proceeding on this basis would provide a cushion against a situation that, at the time, they will have little or no control in.

Mike Baker, Bethlehem.