New Plymouth Aims to Slash Rates Increase with $8 Million Savings

New Plymouth Mayor Max Brough has announced plans to significantly reduce the expected rates increase for the district, aiming to lower it from a projected 10% to approximately 4%. This comes as part of his commitment during the local body election campaign, where he emphasized a rates cap to alleviate financial pressure on residents.

Brough’s initiative follows the announcement from the Government regarding a nationwide rates cap of between 2% and 4% by 2027. He asserted that the New Plymouth District Council would proactively work towards achieving this before the government’s timeline. In a recent interview with the Taranaki Daily News, Brough indicated that he has directed senior council management to conduct a comprehensive review of the council’s operating expenditures starting from July.

“The team is exploring various avenues to achieve these savings,” Brough explained. “They have also assessed the potential impacts, ensuring that when we reach the Annual Plan process in the New Year, we have a clearer picture of what can realistically be accomplished.”

To shift the projected rates increase from 10% to 4%, the council must identify approximately $8 million in savings from its annual budget. Favorable financial conditions, including lower interest rates than those anticipated in the Long-Term Plan approved in 2024, are expected to aid in this effort.

Brough has also instructed staff to set more realistic targets for project renewals for the upcoming financial year. He noted that historically, the council committed funds through the Annual Plan for projects that often went unfinished due to limited contractor availability.

“There were numerous projects that were funded but not completed, leading to carryovers,” he stated. “We are now focusing on only funding what we can confidently deliver.”

While preliminary figures regarding potential savings have been shared with Brough, he is withholding them from public disclosure until council members have had time to review the details. He emphasized the need for accuracy to avoid repeating mistakes from the previous year when an audit uncovered undercharging issues. Last year, the council had to reimburse ratepayers an average of $102 due to those errors, which also necessitated finding $3.1 million in savings to offset the shortfall.

Despite the positive trajectory, Brough remains cautious about unforeseen challenges in local governance. “There is always something that could come out of left field,” he warned, acknowledging the unpredictable nature of public sector finances.

As New Plymouth moves towards a more sustainable financial model, residents will be watching closely to see if Brough’s promises translate into tangible savings on their rates, as the council prepares for its Annual Plan discussions in early 2024.