Latest news with #AnnualPlan
NZ Herald
12 hours ago
- Business
- NZ Herald
Whanganui District Council rejects funding request from Quartz ceramics museum
The Quartz Museum of Studio Ceramics' plea for $60,000 in annual funding has been denied by the Whanganui District Council. Museum founder and director Rick Rudd made the request during hearings on the council's 2025-26 Annual Plan earlier this month. He cited burnout and said the money would be used
Scoop
2 days ago
- Business
- Scoop
Tauranga Council Cuts $9.85m In Costs To Shave 2.1% Off Rates Rise
Article – Alisha Evans – Local Democracy Reporter The council deliberated on its 2025/26 Annual Plan from Monday to Thursday after receiving 968 submissions and hearing from 68 people in person this month. Tauranga residents are facing a 9.9% rates rise after the council found extra savings. Tauranga City Council faced public criticism for proposing a 12% rates increase, down from a projected 20%. It has found $9.85 million more in cuts to council operating costs to knock off another just over 2%. These included saving $166,000 by turning public recycling bins – which had high contamination rates – into rubbish bins. The biggest cost drop, however, came from employee reductions, with at least 98 roles cut and at $12.3m saved. The council deliberated on its 2025/26 Annual Plan from Monday to Thursday after receiving 968 submissions and hearing from 68 people in person this month. On Thursday Mayor Mahé Drysdale said the changes and savings made in the plan would flow through to future years. Drysdale promised he would keep the rates below those forecast in the long-term plan. The 9.9% overall rates rise was 'not as good' as the councillors would have liked, but it was a start, he said. The council would be looking at every dollar because they needed to be prudent with people's money, Drysdale said. 'We have to respect ratepayers' money, and we have to deliver things for as small a cost as we can.' The community had also told the council more facilities were needed, he said. 'We've been dealt a very tough situation where our infrastructure and our community assets are well below where they need to be.' He said the challenge was finding the balance between delivering projects and reducing rates. 'I'm very proud of this team [and] I think we have delivered a very good balance.' Councillor Glen Crowther said it was a challenging Annual Plan because they were dealing with past decisions that added costs to the organisation. A lot of those decisions were 'firmly locked into place', he said. Crowther said he wanted a lower rates increase. 'I appreciate that a lot of work went into getting to the 9.9%, so I'm not dismissing that, but I think we need to end up lower.' The council's operating expenses were still too high, and he wanted work done before the Annual Plan was adopted in July to reduce rates further, he said. During the four days of deliberations, the council discussed everything from portaloos to tsunami paths in Pāpāmoa. Tauranga Netball asked for $20,000 to lease five portaloos toilets at Blake Park during the winter sports season. Drysdale said this was 'expensive' and they needed to 'get a deal'. The council decided to buy the portaloos and would be able to pay for this within the current budget. The Ōtūmoetai Pool, an 'amazing community asset' slated for closure, was saved. The council also agreed to extend the Pāpāmoa shared coastal path from Parton Rd to Taylor Reserve, provided it cost no more than $1m and could be delivered within the council's current budget. There were some losers from the deliberations. Councillors declined ARGOS Gym Sports $67,000 for a new kitchen and cafe facility, and Bowls Matua would not receive $180,000 to upgrade its third green. Creative Bay of Plenty would also not receive a $77,500 increase in its funding. The rates increase would be finalised in June when the Annual Plan was adopted. How the council achieved its savings • Projects reprioritised or delivered in-house $3.2m • Reduction in consultants and more use of internal services $3.9m • Employee cost reductions $9.1m – 98 roles were disestablished with more possible • Uptake-related kerbside collection cost reduction $900,000 • Interest-related finance cost savings $2m • Increased user fees $2.3m • Reduced engagement and education costs $1.5m • Other organisation-wide cost reductions $5.1m The extra savings to get to 9.9% • Further employee cost reductions $3.2m • Interest and depreciation savings $2.2m • Process improvement savings $3.8m – LDR is local body journalism co-funded by RNZ and NZ On Air.
Scoop
2 days ago
- Business
- Scoop
Tauranga Council Cuts $9.85m In Costs To Shave 2.1% Off Rates Rise
Tauranga residents are facing a 9.9% rates rise after the council found extra savings. Tauranga City Council faced public criticism for proposing a 12% rates increase, down from a projected 20%. It has found $9.85 million more in cuts to council operating costs to knock off another just over 2%. These included saving $166,000 by turning public recycling bins - which had high contamination rates - into rubbish bins. The biggest cost drop, however, came from employee reductions, with at least 98 roles cut and at $12.3m saved. The council deliberated on its 2025/26 Annual Plan from Monday to Thursday after receiving 968 submissions and hearing from 68 people in person this month. On Thursday Mayor Mahé Drysdale said the changes and savings made in the plan would flow through to future years. Drysdale promised he would keep the rates below those forecast in the long-term plan. The 9.9% overall rates rise was 'not as good' as the councillors would have liked, but it was a start, he said. The council would be looking at every dollar because they needed to be prudent with people's money, Drysdale said. 'We have to respect ratepayers' money, and we have to deliver things for as small a cost as we can.' The community had also told the council more facilities were needed, he said. 'We've been dealt a very tough situation where our infrastructure and our community assets are well below where they need to be.' He said the challenge was finding the balance between delivering projects and reducing rates. 'I'm very proud of this team [and] I think we have delivered a very good balance.' Councillor Glen Crowther said it was a challenging Annual Plan because they were dealing with past decisions that added costs to the organisation. A lot of those decisions were 'firmly locked into place', he said. Crowther said he wanted a lower rates increase. 'I appreciate that a lot of work went into getting to the 9.9%, so I'm not dismissing that, but I think we need to end up lower.' The council's operating expenses were still too high, and he wanted work done before the Annual Plan was adopted in July to reduce rates further, he said. During the four days of deliberations, the council discussed everything from portaloos to tsunami paths in Pāpāmoa. Tauranga Netball asked for $20,000 to lease five portaloos toilets at Blake Park during the winter sports season. Drysdale said this was 'expensive' and they needed to 'get a deal'. The council decided to buy the portaloos and would be able to pay for this within the current budget. The Ōtūmoetai Pool, an 'amazing community asset' slated for closure, was saved. The council also agreed to extend the Pāpāmoa shared coastal path from Parton Rd to Taylor Reserve, provided it cost no more than $1m and could be delivered within the council's current budget. There were some losers from the deliberations. Councillors declined ARGOS Gym Sports $67,000 for a new kitchen and cafe facility, and Bowls Matua would not receive $180,000 to upgrade its third green. Creative Bay of Plenty would also not receive a $77,500 increase in its funding. The rates increase would be finalised in June when the Annual Plan was adopted. How the council achieved its savings • Projects reprioritised or delivered in-house $3.2m • Reduction in consultants and more use of internal services $3.9m • Employee cost reductions $9.1m - 98 roles were disestablished with more possible • Uptake-related kerbside collection cost reduction $900,000 • Interest-related finance cost savings $2m • Increased user fees $2.3m • Reduced engagement and education costs $1.5m • Other organisation-wide cost reductions $5.1m The extra savings to get to 9.9% • Further employee cost reductions $3.2m • Interest and depreciation savings $2.2m • Process improvement savings $3.8m - LDR is local body journalism co-funded by RNZ and NZ On Air.
Scoop
3 days ago
- Business
- Scoop
Cost Savings Locked In For Annual Plan 2025/26
Tauranga City's Mayor and Councillors yesterday settled on an average rate increase of 9.9 percent to support the city's Annual Plan 2025/2026 – just over two percent less than the increase consulted on in April. The decision comes after four days of deliberations this week, as the Council worked through the city's priorities for the next financial year, with discussion centred on how greater value for money could be achieved across all projects. Mayor Mahé Drysdale says the Council doesn't want to slow progress down so is focused on reducing costs while maintaining service delivery and continuing to provide facilities that the community needs and wants. 'We want to deliver for Tauranga and make this city the best in the country. Many of the decisions we're making today will make a difference in years to come. This year we've really invested in community facilities to cater for the city's growing population, because many of our existing facilities are already operating at capacity,' says Mahé. 'We understand that a 9.9% average rates increase is still considerable for the community, but we are delivering around half a billion dollars' worth of much-needed capital works, one of the largest investment programmes in the country and one of the biggest we've ever delivered. 'While the rates increase is higher than we would have liked, I'm satisfied that we've done everything we can to balance the need to invest in our future, while keeping rates affordable, including delivering $38 million of savings through this annual plan process,' Mahé says. 'I would like to commend staff for their response to our call to action to reduce spend and increase efficiencies across projects. It's been a collective effort from the Council and staff to get to this point. 'This is just the start of our journey, and there is plenty more to do.' Mahé thanks the community for their submissions and sharing their points of view. 'We received some constructive suggestions, and we've taken everything on board. 'Now the challenge is to deliver our work programme and cement-in the budget savings we've made.' Community facilities to receive support in the Annual Plan 2025/26: Relocatable changing rooms for Mount Maunganui Cricket Club Part-funding of portaloos for Tauranga Netball at Blake Park A Pāpāmoa Rugby Club relocatable clubroom facility Investment in lighting for the Judea Community Sport Club (subject to feasibility) Additional support for paid lifeguard services at Tay Street Beach A commitment has also been made to work with Arataki Sports Club and Papamoa Tennis Club on the feasibility of future facilities. Support was also given to the development of a 50-metre outdoor training pool at Mount Maunganui College, subject to due diligence, and to the investment needed to keep the Ōtūmoetai Swimming Pool up and running Mahé says thanks to some offers of help from the community, the Council was able to approve a few items without additional rates funding. A full list of funded projects will be available on council's website from late-June and the Draft Annual Plan 2025/26 will go to the Council for adoption on 26 June. Other approvals given this week: Council approved $2 million of expenditure to be brought forward into the Annual Plan 2025/26 from the 2027/28 financial year, to fund and progress the Connecting Mount Maunganui detailed business case – with a further $1 million to be brought forward into the Annual Plan 2026/27 in addition to the $500,000 already allocated in that year. This would be financed through the existing transport-related infrastructure funding and financing levy (IFF), with no impact on rates. This project would aim to address improving road safety and access to, from and through Mount Maunganui. Council will also invest up to $1 million in the stage two extension of the Pāpāmoa Shared Pathway, subject to this fitting within the Annual Plan budget. Local Water Done Well Following consultation in April, the community's submissions on the Local Water Done Well proposals were collated and presented to the Council on 28 May. Community views on whether to establish a multi-council CCO were close to evenly split, with some people supporting the efficiencies of scale and regional perspective that this would bring, while others were concerned about cost increases and loss of local control. Council resolved to keep all three waters together (drinking water, wastewater and stormwater), recognising that some stormwater land that has a high amenity value to the community should stay under council management, and noted that its proposed model remains a multi-CCO. A public workshop to review financial modelling for the waters proposals will be held on 24 June. A decision on the preferred delivery model is then expected to be considered at the Council meeting on 15 July. A summary of community responses can be found in council's 26 May 2025 agenda.
Scoop
3 days ago
- Business
- Scoop
Is This The Lowest Rates Rise In The Country? Whanganui Council Holds Firm On 2.2 Percent
Article – Moana Ellis – Local Democracy Reporter The council is holding firm on an increase of 2.2 District Council is sticking to an average rates increase of 2.2 percent following deliberations on its draft Annual Plan. Mayor Andrew Tripe believes it's the lowest rise in the country for the year ahead. The plan for 2025/26 will go before the council in June to be adopted. Tripe said the council has focused on doing the basics well, investing in core infrastructure, and involving the community in decision-making. The big topics thrashed out by the council in this week's deliberations were creating a standalone housing entity to grow housing stock, adopting a new strategy for Whanganui, changes to fees and charges, and increasing loan repayments. In each case, community feedback aligned with the council's preferred options. On Thursday, the council confirmed it would: Continue to consider a standalone housing entity Consider all submissions and feedback to inform any minor changes ahead of adopting the draft Strategy for Whanganui Proceed with proposed changes to fees and charges for the year ahead Pay off an additional $590,000 of debt. Operational budget changes have also been made since the council opened its draft Annual Plan 2025/26 for consultation. This includes water levies set by water services authority Taumata Arowai to recover the cost of regulatory functions. These levies will take effect from 1 July, 2025 and are expected to cost around $16 per household. Tripe said it was 'incredibly frustrating' to receive news of the levies just as the council was about to adopt its budgets for the year ahead. 'It is yet another example of central government shifting costs to local councils and communities – when it should be administered and funded at a national level.' These levies, along with proposed Commerce Commission levies, would be incorporated into the Annual Plan budget for 2025/26 and would affect three waters rates for connected households. To ensure full transparency, the levies would be identified on rates notices. However, they would not increase overall rates due to additional income from other council revenue streams. The Annual Plan will be adopted on 26 June, with the plan taking effect from 1 July.
