FAQs on the Draft Ten Year Plan

Here are some frequently asked questions about our Draft Ten Year Plan and rating levels. This rates newsletter that will be sent out with the instalment 4 rates invoice.

1. What is the draft Ten Year Plan?

The Draft Ten Year Plan is the name given to council's draft Long Term Council Community Plan (LTCCP).  Every 3 years all councils in New Zealand must produce a Long Term Council Community Plan.  The Draft Ten Year Plan provides information on all of council's activities and services, and sets out priorities for the decade ahead and how they will be paid for. The Draft Ten Year Plan becomes council's final plan once the community has been consulted and council adopts the final plan.

2. Why does Gisborne District Council have a Ten Year Plan?

The Local Government Act 2002 requires it but it is also good practice to undertake long term financial and asset management planning - particularly when council owns $1.7 billion worth of assets, some with lives of up to 100 years.

Council calculates the level of the rates collected by determining the services and infrastructure council and the community requires. The Draft Ten Year Plan sets out this information and then council consults on this with the community.  Planning for the next 10 years is a long and involved process that ensures council takes a long-term, strategic view of the district and uses best practice planning processes.

3. How do I know whether it is a good plan?

Council is currently consulting on the Draft Ten Year Plan.  It covers the time period 209 -2019. Your views on the plan and whether or not you think it is a good plan are important to council. 

What we can tell you is that all councils must have their draft plans audited by the Office of the Auditor General (OAG).  The audits are carried out to ensure that a sound process has been followed from the original planning to final preparation.   The Gisborne District Council's Draft Ten Year Plan was audited prior to council adopting it for consultation. The preparation and processes behind it were found to be sound. However, this doesn't mean that what is in the draft plan won't change. Council considers all submissions on issues, and as a result may reconsider and/or make changes its draft plan.

4. Why are my rates increasing?

a)     Gisborne District Council has more assets (roads and buildings etc) per person than other districts.  It is council's statutory duty to maintain them, and that cost is increasing.  Depreciation will increase by $1.6M in 2010.  This represents 4% of the overall 7% increased rates revenue for 2010.   Depreciation is the cost of the wearing out of our assets.  It is based on the life of the asset.  Council can then use this money towards paying for replacement assets.

b)   Increased interest costs represent $0.5M or 1% of the 2010 rates rise.

c)     In the Draft Ten Year Plan council applies inflation for every year of the plan to ensure its financial planning is reasonable.

d)     Changes to how council is funding some activities.  For example some farming properties will have a rates increase as there have been changes to pests and plant rate funding.

5. Why are rates for Gisborne city residents increasing more than Wainui or hill country farmers?

The actual amount you pay in rates is affected by:

a)     Changes in your property's value.  The last district revaluation occurred in September 2008 and many city properties increased in value compared to rural and Wainui neighbours.

b)   Recent changes to how Council applies the rates across the district, that is the "who pays for what" decisions.  For Gisborne city residents who receive the most services from council (such as water supply, sewerage) 80% of their rates are fixed.  The remaining proportion of their rates is affected by property value.  For Wainui ratepayers only about 40% of their rates are fixed. The other 60% is influenced by property values. See chart in the Rates newsletter.

6. There is a recession. What is Gisborne District Council doing to respond to this?

Council has reduced the scope and costs of some major projects.  Most importantly the estimated cost of the wastewater treatment plant has been reduced from a proposed $84M to $45M.  Council has prioritised projects that maintain our critical assets, which are essential for the functioning of the district (wastewater, water supply, stormwater, roads, conveniences and flood control). Other responses council has made to manage costs are:

• a. Capital projects which attract external funding have been given priority which means the rating dollar goes further e.g. walkways.
• b. As a result of this prioritisation process council has cut $100M of capital projects from our Draft Ten Year Plan.
• c. Council is committed to ongoing efficiency savings.

7. How much will my rates increase?

Rate increases vary greatly over the district.  You can go to 'Check out your rates', type in your street address and find out what you are paying now and what you will pay if the plan is adopted.  The following table gives you an idea of how many people in the district will pay how much extra per week.

8. Why are there non-essential projects when many ratepayers are struggling to make ends meet?

Projects which improve community infrastructure (library, pool, theatres, inner harbour enhancements, recreation facilities, civic space development) are desirable and beneficial, influencing our ability to attract people and investment to the district.  While non-essential projects have been included in the Draft Ten Year Plan, their delivery has been pushed back until the community is better placed to fund them.  Council is also working with other agencies and businesses to help fund many of these projects.

9. How can the Gisborne district afford a $45M wastewater treatment plant?

Council has been aware for a long time that it needs to construct a new wastewater treatment plant. For the last 6 years ratepayers have paid a wastewater capital rate. This makes up about 5% of the rates collected. In 2010 this capital rate will increase by $29 for each rateable property in Gisborne city.

10. What is in the Ten Year Plan for people living in rural areas or on the coast?

Over the last 2 years we have been working with communities to develop township plans for rural towns in the district.  In the Draft Ten Year Plan there are many small projects that contribute to the township plans like Waiapu River flood control works, beautification of the town centre in Patutahi, public toilet upgrades in Tokomaru Bay and Te Karaka.  In 2009 we will be working on township plans for Matawai, Rangitukia/Tikitiki and Te Puia Springs. There is a summary of capital projects in the Draft Ten Year Plan Summary.

11. Is it too late to change what is in the plan?

No the plan is still a draft and councillors welcome feedback on the projects, the rates and any other aspects of it.  You can attend one of the many public meetings being held to find out more.  You can now make a submission on any aspect of the plan.  These submissions will then be collated and presented to councillors to consider in May 2009.

12. How can I make a submission on the Draft Ten Year Plan?

You can:

• Fill out the submission form in the Draft Ten Year Plan summary
• Fill out a form online
• Speak with the Mayor or a Councillor
• Phone customer services on 867 2049 and they will complete a submission for you
• Visit customer service at Fitzherbert Street offices or Te Puia Springs Service Centre

13. When do submissions close?

Submissions close at 4pm on Friday 1 May 2009.

14. When will the plan become final?

Gisborne District Council must have a new Ten Year Plan in place by 1 July 2009.

15. How do I submit on the Urban Development Strategy or the Regional Land Transport Strategy?

The same way you submit on the Ten Year Plan.  See point 12 above.  Because many of the projects in the Ten Year Plan form part of these strategies, council will use any relevant submissions to inform all 3 draft documents.

16. When are the hearings held on the submissions received

They will be held on Monday 25 to Wednesday 27 May 2009.

17. I am having trouble paying my rates now. What can I do?

a)   You can contact our credit control section on 06 867 2049 to discuss a variety of solutions.

b)   You can apply for a Rates Rebate from council's offices in Fitzherbert Street or at the Te Puia Springs Service Centre.  This Government scheme gives low income ratepayers a reduction off their annual rates of up to $530.  Rates rebates for this rating year close on 30 June 2009. Check out the rates rebate webpage.

c)   You can pay using our easy direct debit payment options.  Monthly direct debits are deducted on the 20th of each month.  Quarterly direct debits are deducted on the last date for payment of each instalment.  Check out direct debit payment webpage