At a council meeting yesterday, the long-term plan (LTP) was adopted, which sets out the framework for the next 10 years.
The document put to councillors showed an average rates increase of 13.18% for the 2024-25 year.
The LTP also outlined the council’s decision to operate in budget deficits for seven of the 10 years.
Among the reasons for that were the continued depreciation of water and wastewater assets, the level of funding the council expected to receive from NZTA Waka Kotahi for its roading projects and inflation.
Cr Don Byars asked if it was financially prudent to operate in deficit for such a long period.
Deloitte audit director Mike Hawken said this was a judgement call and one the management team had made.
"We should [be] aiming for a balanced budget which we do achieve by the end of the long-term plan period.
"I think the nature and the reasoning for why are you in deficit makes sense, so we wouldn't want to see that for a long-term perspective, but we understand the reasoning for it."
Cr Derek Chamberlain questioned what would happen if councillours did not approve the LTP.
Risk and assurance committee chairman Bruce Robertson said it would cause significance challenges to council in relation to cash flow.
While he acknowledged council was in a "fluid position" he said space for changes was part of the annual plan.
Cr Jaspreet Boparai believed council could have done more and cut some other costs.
"We need to take a long and hard look because our ratepayers cannot afford this in whatever shape or form ... "What have we changed in our council operations?
"We have really not reduced anything."
Cr Matt Wilson, a first-time councillor, said he regretted not addressing issues which appeared at the beginning of the triennium.
He said that as issues came up in his term, they were put off to be discussed as part of the LTP process — and now that they were in that process, they said it would be part of annual plan discussions.
Cr Wilson said he would not let this happen again.
"If something costs too much we either have to change the level of service or we look to other ways of how we do it or how we can share with our neighbours ...
"We can adopt this LTP [today] but I am not sure how many of us actually endorse it."
Cr Byars agreed.
"There is a big problem and the problem is that we are spending too much money.
"I know we heard, we like to say that there is a funding issue, but is not a funding issue, it is a spending issue.
"You need to accept what the problem is before working on any solutions."
Cr Sarah Greeney said council was in constantly evolving situation, but that by adopting the LTP they would be able to continue to do business.
Cr Paul Duffy said council went through a very robust process and many of the bridges and roading costs have increased considerably since the last time they discussed the long-term plan.
"If we don’t do the work, then we’re just handing a bigger bill to the future.
"With any long-term budget you sort of just estimate high in your costs and conservatively in your income to give a picture of what it will look like.
"We got this in front of us."
