Over the next decade ratepayers are looking at a projected 1.9 per cent rates increase annually and external debt falling to $4 million or less.

The news was delivered to the Thames-Coromandel District Council recently as it endorsed its Draft Long Term Plan consultation document which goes out for public consultation in March.

Rates are projected to increase annually to 1.9 per cent over the next 10 years, says the Thames-Coromandel District Council. Photo: File

This coming year the average rates will increase by 3.6 per cent and will average out over the next 10 years to an annual 1.9 per cent increase.

This coming financial year's increase will come after $46.6m of unpaid debt, relating to the TCDC's three eastern seaboard wastewater plants, is moved to existing ratepayers.

But chief executive David Hammond says rates still will not be as high as what ratepayers in many areas were paying back in 2010.

'We had no choice but transfer this debt to the current ratepayer as we do not envisage the numbers of new ratepayers arriving to pay it off,” says David. 'A lot of this can be attributed to recession which hit the Coromandel in 2009.

'If this situation changes in the future we will most certainly revisit it. But in the meantime it is the prudent thing to do.”

Mayor Glenn Leach says the reduction of the external debt to $4m or less and the steady building of infrastructure reserves puts council in a 'sound fiscal position”.

Glenn adds that if there are any exceptional risks or surprises the council is able to 'deal with it”.

At least week's meeting councillors were informed that average property rates still remain well under 2010 rate levels in many areas of the district.

Residential properties in most parts of Coromandel would also enjoy rate levels lower than 2010 for five to seven years.

The picture is even better for commercial properties whose average rates will remain under 2010 rate levels for more than fifteen years.

In 2010 Thames residential property owners with a land value (LV) of $140,000 paid average rates of $2,243. In council's draft LTP they won't pay more than that until 2017/2018 when the average rate is $2,297.

While Thames rural property owners with LV of $4.2m in 2010 paid an average $12,863 in rates. Under council's draft LTP average rates are still less than that by 2024/2025 with an average of $9,332.

Coromandel residential property owners with LV of $225k paid an average rate of $2,528 back in 2010. It will only be eight years later that it returns to a similar rate of $2,560 in 2017/2018.

And in 2010, Tairua-Pauanui residential property owners with a LV of $400k paid an average rate of $2,730. It returns to an average rate of $2,788 by 2017/18.

'Our rates and debt position is really good news as it tells us the story of where we've come from,” says Glenn. 'To now only get back to the rate you were paying seven years ago - at the earliest - is extraordinary in local government terms.

'This data proves that what this Council has implemented is really working.”

In 2010-2011 the council began implementing reforms which included an organisational restructure plus streamlining processes, and reducing operational costs.

Council has renegotiated and brought more roles in-house, if it can be shown that it can save money and create efficiencies.

It has also partnered with other councils to reduce costs, for example kerbside rubbish/recycling, to reduce operational expenditure.

Glenn says: 'If we can do a project well with a Corolla rather than the Rolls Royce, that's what we'll do.”

'Case in point is the Thames Valley Water Project where there was $16m in the previous LTP to look at the upgrade of the water supply for this catchment.

'Under our community empowerment model - as well as having local input in the decision making - we were able to reduce the project cost down to $5m.”

Council is also looking at how to manage risk better, with projects like its Below Ground Asset Investigation.

This investigation will give a better understanding of the quality and age of council's stormwater, wastewater and water pipe networks, allowing for more robust renewals planning.

To read the Thames-Coromandel District Council's draft Long Term Plan Consultation Document click here.

Please note this document may undergo further changes as it will go to Audit New Zealand before being officially endorsed by council.

The draft LTP Consultation document will then be approved by Council to go out for public consultation from March 9 until April 9.