Continued investment despite Tasman’s economic challenges

There are no significant cuts forecast by Tasman District Council over the next 10 years, despite the rising costs still being seen across the country.

Instead, investment is proposed to be directed into two main areas – essential services and community facilities.

“Navigating the next decade requires a balance between delivering important services and maintaining affordability,” said Mayor Tim King.

“By implementing a 10-Year Plan that prioritises essential infrastructure while safeguarding vital community services we are committing to a sustainable future for all of Tasman.”

So, what is the council planning for the next decade and how will it be funded?

Rates:

The council has proposed a 9.6 per cent rates increase for Tasman for the next financial year.

A 7.2 per cent rates increase would follow for 2025/26, though in the remaining eight years of the 10-Year Plan, the average annual increase would drop to 4.6 per cent.

The high increases for the first two years are due to increased insurance costs and interest rates, as well as changing requirements from the Government.

The council is also proposing to begin to move towards fully funding depreciation – the cost of replacing an asset – which also drives up costs.

The average rates increase across the country this year is 15 per cent.

“The reason we are probably… below the average is because our rates are already reasonably high and our debt is already up there, and that is because we have over time made conscious decisions to invest in infrastructure and community facilities,” Tim says.

“The longer you leave these things to do, they are very, very expensive.”

Infrastructure:

That continued investment in essential infrastructure is proposed to continue over the coming decade to prevent blown-out costs further down the road.

Three Waters infrastructure are especially being focused on, with upgrades planned for Redwood Valley and the Waimea Plains from 2024, Dovedale from 2025, Māpua and Seaton Valley from 2029, and new wastewater treatment plants for Motueka and Tākaka from 2030.

The two new plants for Motueka and Tākaka will address capacity and resilience issues but have large price tags and are expected to result in the council exceeding its self-imposed debt cap, though remaining well below the maximum limit allowed by the Local Government Funding Agency.

The council is also looking at “significantly” increasing its sealed road maintenance budget to get on top of deterioration across the road network.

Community facilities:

At the request of local communities, the council is also proposing to forge ahead with several community facilities, including new hubs for Brightwater, Wakefield, and Tapawera, the much-anticipated Motueka swimming pool, and an extension to the Murchison Sport, Recreation and Cultural Centre.

The bulk of the costs of these new facilities will be covered by Reserve Financial Contributions, or RFCs, and community fundraising.

RFCs are accumulated funds paid from a percentage of a new allotment’s value which are then pooled and put towards developing new community spaces.

Because of how the facilities are funded, they will only have a small impact on rates during construction, though the facilities’ operations going forward will be funded by rates.

Options to reduce rates:

While Tim believes the council has “struck a good balance” in providing a starting point for community discussion about the future, he acknowledges that the proposed rates increase is still “not as low as many people would like to see”.

Several additional cost-saving measures have been included in the council’s consultation document on its 10-Year Plan, though not recommended, in case they were favoured by residents.

These options include scaling back library opening hours to four days a week, reducing community grants, funding for economic development and parks maintenance, or selling assets.

Other factors:

Tasman residents will also be able to provide feedback on a range of other issues, including expanding weekend eBus services, investing in safety for cyclists and pedestrians, and the extensiveness of the council’s response to climate change.

Timeline:

Consultation on the council’s 10-Year Plan will open on 28 March and run until 28 April.

The council will refine its plan through May and June based on public feedback before adopting a final version in time for the new financial year beginning on 1 July.

From 28 March, the consultation document and other supporting information will be available on the council’s website, and at its customer service centres and libraries.