Waimarino getting its fair rates share, claims RDC

Ruapehu Bulletin, Volume 14, Issue 686, 13 May 1997, Page 1

Waimarino getting its fair rates share, claims RDC

How much the Waimarino spends in rates compared to what it gets in services were among the concerns expressed by the promoters of the 'Think Tank' meeting, held at the Ohakune Club on Wednesday 9 April. At that meeting, council officers had planned to make a presentation to illustrate the situation that Waimarino faced before and after amalgamation in 1989 of the three councils, Taumarunui Borough (TBC), Taumarunui County (TCC) and Waimarino District (WDC). Because the staff did not have the opportunity to make the presentation, the Bulletin has since approached acting chief executive Chris Ryan, and following is a summary of the presentation: Financial situation, pre-amalgamation In terms of general funds as at 31 March 1988, TBC had $85,000, TCC had $412,000 and WDC had $165, and at 31 March 1989, TBC had a deficit of $398,000, TCC a deficit of $57,000 and WDC had a deficit of

$390,000. In 1990 a total deficit of $1 ,104,000 was budgeted for, with an actual deficit of $1,545,000 in general funds by 3 1 March 1990. This was offset by special funds of $2.1 million to leave a total of $600,000 in funds available. Capital Investments Since amalgamation the Ruapehu District Council has made substantial investments in the assets of the Waimarino Ward, with a view to upgrade and provide improved service. Roads: Shape correction, seal extensions, kerb and channel and footpath extensions to the value of $3,992,000. This involved 2.5km of shape correction, 18.1km of seal extension in the rural areas; 0.67km of shape correction; and 1.96km of seal extension in the urban areas as well as 2.14km of footpaths and 2.39km of kerb and channelling. Tuni to Page 4

Waimarino's share is fair: RDC

FROM PAGE 1 Drainage: Upgrading both reticulation, treatment and carrying out investigations to provide for a better asset management, to a value of $331,000. Stormwater: An overall investment of $207,000 in the Southern wards to improve stormwater reticulation, involving 2.2km of reticulation in Ohakune, 0.94km in Rangataua and 0.34km in Waiouru. Water: Upgrading reticulation and treatment to provide for an improved delivery of potable water to a value of $5,740,000. This involved 2.6 1km of water reticulation in Ohakune, 0.61km in Raetihi, plus $811,000 spent on treatment in Ohakune and $87,000 on investigations. Statistical Information In 1989 the Waimarino Ward population was 4182, in 1991 3796 and in 1996, 3890. Residential building consents dropped in 1991/92 to about three, then rose steadily each year to about 45 in 1995/96, then dropped again in 1996/97 to about 23. The statistical information has been gathered to identify development trends within the Waimarino Ward. It is important to note that the 1989 population statistic is from an internal source and that residential building consents for the 1996/97 year is an incomplete year. Land values Land values in the northern wards totalled $179 million

in December 1 990, rising by 94.4 per cent to $347 million in November 1996. By comparison, Waimarino land values rose from $ 1 1 3 million in 1990, by 87.61 per cent to $21 2 million in 1996. This shows the overall movement in land values between Government revaluations of 1990 to 1996. Although there have been substantial increases in land value they have been relati vely similar between the Northern and Southern wards. Any shift in incidence apparent is actually to wards the north. Rating Poiicy Source of Funds: Of a total of revenue for the RDC for 1996/97 of $16.1 million, 45% comes from rates, 26% from subsidies, 14% from loans, 1 1% from user charges and fees, 2% from dividends, 1% from interest and 1% from petrol tax. General Rates: This figure can be split into two components. The Uniform Annual General Charge ($280.00 per rateable assessment) actually contributes to approximately $2m and approximately $0.5m is funded by way of rate in the dollar of land value. Separate Rates: This includes ward rates, separate uniform annual charges (SUAC) for sewerage and water treatment / reticulation, refuse SUAC, road works North and Road works South rates. These rates are only charged to the beneficiaries and users of the services and are, mostly, a form of localised funding. Rateable Properties: The number of rateable properties within the district gives an indication of the share of rates in the dollar of land value that the Waimarino Ward should be contribut.ing. Waimarino has -2809 rateable properties, or 34.82% of the total of 8067 for the whole district. Actual rates levied, 1 996/97 Waimarino contributed $140,950 in general rates and $687,050 in UAGC rates, which is 28.05% and 34.24% of the district' s totals respectively. As can be seen, the actual rates levied percentage is very close to the benchmark set by the number of rateable assessrhents and if taken in total, that is, total rates in the dollar of land value, the average is 33%. By comparison, Waiouru pays $ 1 1 ,274 in general rates and $42,840 in UAGC; Ohura pays $ 1 20,802 and $838,740; Taumarunui pays $54;246 and $210,000; and National Park $175,273 and $227,920. General Rate Expenditure In the significant activities where it is easy to identify the Waimarino Ward benefit we have extracted total expenditure funded by General Rate, and that expenditure which is directly attributable to the Waimarino Ward, and expressed it as a percentage. As can be seen by the examples of Parks and Reserves and District Stormwater, the Waimarino Ward is getting its share when compared to the benchmark of rateable assessments. For parks and reserves, Waimarino received 38.4% of expenditure and for stormwater, 35.9%. Where To From Here? The direction of the Waimarino Ward and the whole of the Ruapehu District is undergoing a review through the Local Government Amendment Act No. 3 1996 which forces local authorities to look at their operations by way of funding reviews and a long term financial planning. The public have the opportunity to have input into this process by way of a special consultative procedure where the public is asked to make submissions to the strategic plan. Focus groups with representatives from the public will be formed to ensure that views from individual communities and other groups are expressed.