Ways to keep rates affordable
In order for us to keep the rates increase for next year as low as possible, we need to make some tough decisions. The only way that we can achieve an immediate reduction in our rates is by lowering our operational costs through reducing or cutting services.
As a rule of thumb, savings of $750,000 on operating expenditure equates to a 1% reduction on rates, whereas a $7.5 million reduction in capital expenditure equates to 1% reduction in rates. Cutting services can therefore provide a more immediate savings on rates which is why we have focused on these cuts to bring the rates down from the initial 17% to the proposed 10.6%.
We have carefully identified some services where money can be saved, without having too high an impact on our community’s health, safety or wellbeing. This includes reducing budgets for trees, shrubs and annuals, discontinuing the digital strategy implementation and reducing maintenance of premier parks.
All internal projects have been evaluated to determine which will be funded over the next 10 years. We can’t afford to do it all right now, especially in this current economic climate.
This means that multiple projects will not be funded at this stage including: the redevelopment of Kōwhai Park, the Youth Hub project, the Pukenamu Queen’s Park architectural landscape plan, town centre regeneration projects and Whanganui District Council’s contribution to the Tide bus service will end. The Tide bus service will continue to be funded by Horizons Regional Council.
How we fund investment for the future
While it might seem counterintuitive to be talking about reducing services to save money, and also be looking at investing for the future; it’s important to understand that these two things are funded very differently.
Investing for the future does not impact our rates so much in the short term because we generally use borrowing to pay for these types of projects. This means that the cost is spread over many years, and also across future ratepayers who benefit from the investment in long-term assets. Without borrowing for investment into capital projects, communities would simply not have the infrastructure that enables them to exist and grow.
What services should we keep?
Reducing the hours of operation at Davis Library
- Our libraries are some of our most beloved assets. Due to the number of facilities and services we have on offer, there is an opportunity to reduce some areas to save on costs. This could be done by closing the Davis Library one day a week in order to keep rates lower. We do not advise any further cuts to our library services, but are giving our community the chance to share their thoughts.
You can read more about the background and options around this service on page 21 of the Consultation Document.
Close the Whanganui East Pool
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The Whanganui East Pool has provided a great space over the years for the wider community to cool off. However, multiple issues have been identified which will require a significant investment of over $2 million to keep the pools operating. We are proposing the closure of this pool and conducting a feasibility study to look at broader options to develop an outdoor swimming facility that is fit for the future.
You can read more about the background and options around this service on page 22 of the Consultation Document.
Close and sell the Repertory Theatre
You can read more about the background and options around this service on page 23 of the Consultation Document.
Close the aviary at Rotokawau Virginia Lake
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The aviary at Rotokawau Virginia Lake provides an opportunity to see a variety of birds up close, however, a recent zoologist report recommended it be improved to meet bird welfare standards. We consulted on the closure of the aviary in 2022 and decided to retain it, making improvements to bird welfare and enrichment. However, due to the current environment, we are putting this back on the table as an option for the public to feedback on. The council recommends closing the aviary to save $190,000 per year.
You can read more about the background and options around this service on page 24 of the Consultation Document.
Remove the Mainstreet hanging flower baskets
You can read more about the background and options around this service on page 24 of the Consultation Document.
Cuts have not been proposed for the following services:
New Zealand Glassworks
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Te Whare Tuhua O Te Ao New Zealand Glassworks is a centre for art glass, and has a rich history spanning over 150 years. We are proposing that New Zealand Glassworks remain open but to be sold to a private buyer. This way, the glassworks can continue to operate at no cost to the council or ratepayers.
You can read more about the background and options around this service on page 25 of the Consultation Document.
Gonville Library
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There are currently seven library facilities, four of which operate in partnership with local organisations alongside two mobile library vans, and access to a number of online research database. The council does not recommend closing the Gonville library nor reducing its hours, but in the context of rising costs feedback can be given on the future of this service.
You can read more about the background and options around this service on page 26 of the Consultation Document.
Drop off points for rural rubbish
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Without the option of using private providers, the council provides rate-funded drop off points for rural rubbish in the outer rural areas of the district (including Whanganui River Road, Mangamahu and the Kauarapaoa Valley) at a cost of $175,000 per year. We do not recommend ceasing this service as it would mean the outer rural community has no alternative for rubbish disposal which may lead to further fly tipping and illegal dumping; however we are asking the community for their thoughts.
You can read more about the background and options around this service on page 25 of the Consultation Document.
Winter Gardens
You can read more about the background and options around the Winter Gardens on page 26 of the Consultation Document.
Level of community grant funding
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The council provides grants across the community and this funding creates important partnerships. We recognise how important these grants are to our community and it’s now more than ever that such services and events will be needed the most. We’re recommending that we increase the community grant funding by $100,000 to elevate the support we can provide to people throughout our district. There is scope to reduce this amount though to keep rates affordable – we’re interested to hear what you think.
You can read more about the background and options around the level of community grant funding on page 27 of the Consultation Document.
Read the Long-Term Plan Consultation Document(PDF, 12MB)