Federated Farmers Submission for Dunedin City Council Long Term Plan
Federated Farmers appreciates the opportunity to submit to the Dunedin City Council Draft Long Term Plan 2018/28.
We have supported Council’s focus on reducing debt, and limiting rates increases over the previous five years. We recognise that the Draft LTP is responding to expectations within the community and within Council that Council should ‘do more’. However, as a general view we consider some level of caution is still warranted.
We ask Council to continue with a specified rates cap, albeit increased from 3 percent (in previous years) to 4.5 percent, to allow for additional infrastructure related spending.
We consider a specific rates cap remains a good tool for Council to engage with the community around spending priorities and timing of expenditure, in order to ensure rates affordability. We otherwise support a focus on key infrastructure (roading, the three waters, parks and reserves and district planning) as a priority for year 1 of the Draft LTP.
Rating impact
- Federated Farmers notes the proposed overall rates increase for 2018/19 is 7.3 percent.
- The rating examples provided by Council indicate the average farming ratepayer will face an unacceptable increase of 8.4 percent, while farms with higher values will face an even greater percentage increase. For some of these farmers, rates increases will be well in excess of $1,000, which is entirely unacceptable. Federated Farmers strongly opposes these increases. We consider the increases facing farmers in no way reflect the urban-centric nature of much of Council’s proposed new spending.
- We note Council’s reliance on rates is proposed to increase from 57 percent of operating revenue in 2018 (or $138 million) to 67 percent ($219 million) by 2028 and that Council will be pushing hard against debt limits, particularly from 2021 onwards.
- In our view these factors underline a need to deprioritise or defer some lower priority spending, for years 1 to 3 of the Draft LTP.
For more, see the full submission