For a few, this is the time to hold councils accountable for their lavish spending, and it is a time to scrutinise the figures looking for reasons to comment.

The figure most trumpeted is the annual rate increase – and let’s be honest, it always is a rate increase.  The Dominion Post published a report headlined: Councils favour restraint. Of the twenty councils mentioned in the report, the proposed rate increase averaged out at 4.3%, less than the 4.5% rate of inflation that week. “At long last, councils are waking up to the financial realities faced by their ratepayers”, the Dominion Post editorialised.

Horowhenua District Council came in at 4.26%, pretty much bang on the average. The talking points were identified as drainage for sporting fields, road renewals and $643,948 for Shannon’s water supply.  But I can’t help thinking that this information hardly reflects what is happening on our council.

Elected members are popular for two main reasons. The first category are those who pander to the low-rate increase faction; those who can look forward to an election because they have a reputation for keeping the rates down, which appeals to the voters.  And then there are those who like to cut ribbons, who want to leave their legacy as a name inscribed on a plaque. These elected members also have no reason to fear the firing squad, because they can smile broadly and tell the voters: “Look what I’ve achieved during my time on council”.

But neither approach contributes to good governance of a city, district or region.

For instance, those who advocate low rates rarely have to face the expensive catch-up as subsequent councils have to cope with the backlog of essential works left on the back-burner to keep the ratepayers happy. Waitomo District Council faced this predicament some years ago, when the council was forced admit, in their foreword to the 2006 LTCCP that future rates and debt threatened the sustainability of Waitomo as a local authority.

Low or no rate increase has the potential to rebound on future councils.

Equally, current councils need to consider the long-term repercussions of embarking on a flurry of major projects that will leave a trail of debt behind. “Inter-generational equity” has been the catch-cry of councils who use this excuse while borrowing to spend up large, knowing that it will be a subsequent council that will eventually have to pick up the tab.  And this is the reason councils are obliged to prepare a long term plan, once known as the LTCCP, to track the longer term ramifications of populist decision-making during each three-year term of council.
So the trick at annual plan time is not to be fooled by simplistic messages.

The proposed rate increase can be the least of ratepayer concerns.

In conjunction with the draft annual plan documents, council also prepare a summary of the proposed annual plan, which must contain all the major matters in the larger document. It must be clear, concise and written in plain English rather than council jargon so that everybody can read it.

And this is where you should be able to find the matters which really count. For instance the Shannon water treatment plant upgrade hinges on the availability of Government funding, as the total cost of the project is $2,967,250 and the council is relying on Central Government funding of $2,137,750.

Then there is Te Takere, Levin’s new community centre which is expected to cost $7 million. The Council plans to contribute $2.4 million towards this project (including $1.8 million already spent), plus fund any shortfall up to $1.4 million. But this expenditure doesn’t affect the rates this year, because the council finances capital expenditure through loans.

Same with the Foxton townscape proposal. Interestingly, there is space in the summary document for sketch plans of the design but the cost of this project doesn’t rate a mention.

Need I go on?

So my advice to ratepayers is simple: if you don’t want a nasty shock in years to come, please make an effort to look beyond the proposed rate increase and dig a little deeper.
It may take a little time but it could save you money in years to come.