Gore defers long-term plan; imposing annual budget looms
“The next year’s budget is imposing and difficult to develop in such a way that it doesn’t cause some shockwaves for ratepayers,"
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The Gore District Council has deferred its 10-year long-term plan with its CEO warning there is an imposing annual budget to work through instead.
Gore was one of the first councils to lobby the Government to allow local authorities to do be able to defer the long-term process.
A long-term plan covers 10 years and sets out a council’s strategic direction, work programme and budgets for the next decade. As well as expected income, costs, and what rates may look like.
Interim chief executive Stephen Parry has been advocating nationally since early last year to delay or cancel this year’s long-term plan process.
He said the reasons for opting out of a long-term plan outweighed any perceived disadvantages.
Parry highlighted the challenges of preparing a 10-year plan at a time when there was so much uncertainty around the 3 Waters reform.
The Government initially was not keen on allowing councils to defer their long-term plan, instead suggesting a three-month time extension.
However last month Local Government Minister Simeon Brown confirmed councils could defer it until 2025 if they wished.
“The next year’s budget is imposing and difficult to develop in such a way that it doesn’t cause some shockwaves for ratepayers,” Parry said.
“You will see around the country that the focus seems to be exclusively on next year’s rates and not really around the next 10 years.
“So, all of those factors tend to suggest the council would be best placed to give itself more time and develop an annual budget.”
“In 12 months, there will be more certainty around 3 Waters reform and our role in any new structural model.”
It has been suggested the average rate rise across various councils in New Zealand could be around the 15% mark for the 2024-2025 financial year.
The Invercargill City Council has forecasted a 9.17% rate increase for that period as part of its long-term plan.
Parry added it was difficult to get excited about the next 10 years when all the headlines nationally have been about the high level of rate increases being proposed for next year.
The Gore council was not immune to the pressures driving up rates elsewhere and would be better positioned if it focused on just the next 12 months, Parry said.
At a council meeting on Tuesday Cr Glenys Dickson backed taking up the opportunity to defer the long-term plan and felt the process was outdated.
“It’s my hope the Minister will see how futile LTPs are because they are time-consuming and resource-hungry in an ever-changing landscape.”
The Gore council unanimously voted in favour of the deferral and instead will focus on an enhanced annual plan for the next year.
Gore District Mayor Ben Bell said the Government’s decision vindicated the Gore council’s move to lobby the Minister for Local Government at a time when other local authorities questioned the value of deferring their long-term plans.
“For me, it shows that central Government and the Minister value localism and are listening to smaller councils, such as Gore.”
“It (deferring the LTP) means the new chief executive can be more involved in the formation of the long-term-plan, capitalising on the work already undertaken and not being pressured by time.”
Gore will now put together a 2024-25 Annual Plan Consultation Document and then will produce a nine-year-plan next year, which must be adopted by June 30, 2025.