RLC Long Term Plan Decisions

9 September 2024

Decisions from the RLC 10 Year Long-term Plan 2024/34

Rotorua Lakes Council LTP 2024/34

From an LRCA perspective, our response to Rotorua Lakes Council’s proposed Long-term Plan was dominated by utter rejection of the proposed capital rating of the East Rotoiti/Rotomā Sewerage Scheme (RRSS). Well over 200 of the approximately 1500 submissions received by Council specifically objected to the proposal on a number of grounds, particularly the astounding cost overruns and lack of consultation over the previous 3 years or so.

Following submission Hearings and deliberations, some satisfaction was derived from the allocation of an additional debt-funded $4.5m towards the cost along with confirmation of the $10m ‘loan’ from MfE. It should however be noted that these subsidies are recoverable via the Wastewater Operational Charge and Lakes Enhancement Rate respectively.

Below is a summary of Long-term Plan decisions most affecting our communities:-

Rates

The average general rates increase for Year 1 is now 11.42% after taking community feedback into consideration, up from 10.25% which was based on original proposals. Rates increases will obviously differ across and within different rating groups (business, farming, rural residential, urban residential). It should be noted that Revaluations undertaken in 2023 now apply.

Although the overall rural residential average rise is slightly below the above figure, it will be realised that significant valuation increases in lakeside properties have had a commensurate effect on their general rate. LRCA is presently awaiting Council data on the impact of recent revaluations on the different sectors of the District. It is hoped to be able to share this information within the next two months.

And of course, East Rotoiti residents now have the additional burden of large capital repayments to the RRSS on top of the substantial rise to the annual wastewater operating charge which is now in excess of $900.

East Rotoiti/Rotomā Sewerage Scheme

Details of the final proposals:-

Introduce capital repayment for the scheme from 1 July 2024.

RLC subsidy of $2700 per household (increasing from $1500).

$10m loan from Ministry for the Environment – repaid via Lakes Enhancement rate paid by all Rotorua ratepayers (excluding properties in the Waikato region), an increase of $37 per ratepayer per year.

Additional $4.5m project costs to be spread across the wider Rotorua district and recovered via the sewerage target rate, an increase of $15.50 per ratepayer per year).

Projected residents’ share per property = $19,553 (GST excl) or $22,486 (GST incl)

Rating of Vacant Land

Council proposed removal of the existing vacant land remission and charge full rates for water, waste collection and sewerage where available. However it was decided to retain the existing 50% remission for these services.

Short-term Accommodation

Details of the final proposals:-

Business and economic development targeted rate to be applied to short-term accommodation providers advertising for more than 60 days per year.

General rate remains ‘residential’.

New rating applies only to whole dwellings.

Single rooms, granny flats, sleepouts excluded.

Lakes Infrastructure Enhancement

In line with original proposals, no funding is set aside for lakes infrastructure enhancements despite our objections. Council’s reasoning is to ‘allow time to see lakes return to more normal levels and /or assess what a ‘new normal’ might look like thus providing time to re-assess what’s required and allow Council to decide on any investment in the next Long-term Plan’. The decision does not impact on repairs, maintenance and renewals of existing infrastructure which is budgeted for.

Work added back after originally proposing to discontinue these programmes, albeit delayed:-

Rural street improvements – $140,000 per year from Year 4.

Urban street improvements– $210,000 per year from Year 4.

Maori road-lines and unformed roads– $120,000 per year from Year 1.

Rural seal improvements – $630,000 per year from Year 1.

Walking and cycling improvements– $820,000 per year from Year 4 (anticipating $353,000 to be funded by RLC and approximately $467,000 by NZTA).

Reticulated Water Supply

Plans for ‘Extension of water supply services and reticulation to Mourea, Okere Falls, Otaramarae, & Brunswick’ are contained currently within the Infrastructure Strategy under the head line “Water Supply Expansion” which includes a number of anticipated capital works programmes which are subject to Council’s future Long Term Planning cycle . Whilst the plan has not been brought forward, Council acknowledged our request for a timeframe to be identified in the LTP.

LRCA’s submissions to Rotorua Lakes Council’s Long Term Plan 2024-34 can be found HERE.