A median rates increase for Wanaka residents of 8.76 per cent and Hawea residents of 8.43 per cent is proposed in the Queenstown Lakes District Council (QLDC) draft 2020-2021 annual plan. The plan is part of consultation documents being considered by councillors in today’s council meeting (Thursday March 12). 

These median rates are higher than the proposed average rates increase of 6.76% (after allowing for growth of 3.5%) calculated across the whole lakes district.

The proposed increase is more than double the average district-wide rates increase of 3.91 per cent anticipated for the 2020-2021 financial year as outlined in the council’s Ten Year Plan (TYP), and continues the trend set by the council to punch rates up year on year.

Last year the rates increase was over eight per cent for Wanaka residents.

“Changes in a variety of work programmes have added to this projected increase. The impact of increased costs have been partly offset against increased user fees, enhanced cost recovery, and increased loan funding for the ongoing District Plan review process,” QLDC finance, legal and regulatory general manager Stewart Burns said.

This year’s proposed capital works (roads, water, sewerage, etc) budget is estimated at $171.2M which is slightly up on last year’s budget (up $8.47M) but lower than anticipated in the TYP due to revised timings on some programmes, such as parts of the 3 Waters programme, and the deferral of some transport projects.

However, the draft 2020-2021 Annual Plan indicates a big increase of $16.92M in council’s operational costs (staff, consultants, libraries, rubbish collection, maintenance of roads, etc) which is mostly attributed to an increase in landfill costs, increased staffing, revised maintenance contracts and an increase in funded depreciation.

Council’s operational costs - and staff numbers - will increase.

The proposed plan signals a $3.7M expenditure increase on staff to ensure the council has the right capacity and capability to deliver its “ambitious capital investment programme” and maintain levels of service. “Right-sizing” its staff numbers means an increase of 20.2 FTE (full-time equivalent) staff.

Some of the previous staff increases have been attributed to an increase in planning staff needed to handle the growing number of resource and building consents. However, the cost of maintaining this service is largely offset by fees and charges recovered from ratepayers who file the consent applications. The proposed Annual Plan indicates council is anticipating a $732,000 increase in revenue from consent applications and issuing decisions. 

The draft consultation plan said the Wanaka Masterplan, which began in 2017, now depends on preparation of a business case (looking at an “overarching approach” to multiple modes of transport in and around the Wanaka CBD) which will be completed later this year, before another round of public consultation. Implementation is planned for the 2021-2031 Ten Year Plan. 

With the exception of stage three, progress on the Wanaka Lakefront Development Plan (LDP) has been paused by a “bold decision” to reconsider parking provisions so they can be addressed with the Wanaka masterplan. The only progress Wanaka is likely to see this year is in the area between the Dinosaur Park and the marina (known as stage three).

The LDP was adopted by council in 2016 and since then the only infrastructure project completed by council in Wanaka is the Aspiring Road carpark and toilet block from stage one of the LDP.

If the 2020-2021 draft Annual Plan consultation document is approved by council today, the consultation will be publicly notified on Saturday (March 14) in local newspapers. Copies of the consultation document will be available here from Monday March 16 until public submissions close on April 17.

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