Reduced rate increase

Today North Shore City Council sent its long term city plan to the auditors and ATA. I want to thank to all those submitters who expressed a view or made a recommendation to the plan. The rates increase has been reduced from the proposed 5.9% to 5.2% in year one (plus Regional amenities charges). This is still too high but reflects the inclusion of essentialinfrastructural projects to indicate their importance to the new AucklandCouncil. Their omission would have artificially enhanced the appearance ofthe City's accounts as it appears, from a recent DIA report, some othercouncils have done. Also, our rates include wastewater charges, not all ofthe Auckland regional councils do and this needs consideration in anycomparison.
But a great deal of surplus spending has been trimmed. For example the rate increase is 2.8% lower than the previous council planned, saving theaverage ratepayer $136 next year. Also, capital expenditure has been cut by$71.5 million reflecting the close scrutiny of these projects. The largest saving is in transport by $82.9 million but increased spending is inwastewater (sewerage), and potable water by $46.5 million. I am pleased tonote that Birkdale-west wastewater projects have been brought forward ashave major components of Highbury's town centre upgrade. So, while the rates increase is still too high it reflects the tension between keepingrates as low as possible while providing desired and essential services and reducing debt.