Budget 2011/12

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Section 1: Introduction

Introduction to New Plymouth District Council’s Annual Plan 2011/12, from now on referred to as Budget 2011/12.

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Background

Under the Local Government Act 2002, New Plymouth District Council is required to produce a Community Plan
every three years covering the next 10 years. The first three years of the Community Plan are outlined in detail, with the following seven years outlined in general terms.

The Council produced a Community Plan in June 2009. In the years where there is no Community Plan, the
Council is required to produce an annual statement setting out its work programme and financial information for the coming year. Budget 2011/12 sets out the budget for the coming year, the levels of service, performance measures and sources of funding for the Council’s services, as well as other relevant financial and policy information.

Budget 2011/12 is an iteration of the Community Plan. It is the third year of the Community Plan and provides
the community with updated information particularly in the area of financial management. The Community Plan
should be seen as the principal planning and accountability document for the community, with this plan serving the purposes of an addendum.

Changes in Budget 2011/12

This year’s budget reflects a continued approach of “Progress with Restraint”.

The Budget 2011/12 has been formulated following a series of Council workshops to determine the rating
increase for 2011/12. As a result of these workshops, the Council has reduced the projected rates increase from seven per cent in the Community Plan 2009-2019 to 5.5 per cent for the year 2011/12.

Major savings of $2.6 million were made by reducing internal operating costs on energy consumption and
insurance, making adjustments to depreciation and renewal profiles and increasing revenue. These savings help to offset other increases and do not impact on service delivery.

Overall there is a $4 million cut in anticipated rate requirement for 2011/12 from that projected in the original
Community Plan 2009-2019.

For the 2011/12 year this would mean that the average residential rates bill would increase by less than $8 a month. Before savings this would have been $10 a month. The average monthly rates bill is now proposed at around $156.

The Council has made sure that most of the budget changes could still be made without a significant reduction
in the level of service currently provided by the Council, whilst continuing to provide $8.1 million for renewals on our roads and in total expending over $48.37 million on capital works.

The Council worked hard deliberating on the savings and did not make the choices lightly recognizing that whilst the recession is officially over there is still a slow economic recovery.

The Draft Budget 2011/12 went out for consultation on 31 March 2011. On receipt of submissions the Council held public hearings and deliberated on all information received. The Council then approved all the amendments to be made to Budget 2011/12 on 27 June 2011.

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