Our Council recently signed off on the Long-term Plan for the city, which sets the budget for the next 10 years.
Knowing how tough times are for everyone right now, no one was happy with having to approve an average rates increase of 17.5% – something simply unimaginable a few years ago.
I know it’s no consolation, but we did work hard to pare back the budget where we could. We reduced our capital programme, cut some services, and the Chief Executive made internal organisational savings. Still, with mounting costs, it was not enough to maintain critical infrastructure. All councils are dealing with these same challenges.
I know you are also facing the same economic pinches – cost-of-living increases for housing, heating homes, insurances and interest rates.
We too have these increases and with three waters infrastructure remaining on the Council’s books, we also face significant infrastructure pressures as our water assets need renewing or replacing.
Our Long-term Plan must also look ahead and prepare the city for the coming decades. Investments are needed to improve water quality, progress our resilience to adverse weather and prepare for a low-carbon future.
Within this context we also need to apply sound financial management, which means remaining below a debt ceiling. If we go over this, our ability to respond to future emergencies will be compromised and our credit rating potentially downgraded. This would increase our interest rates and place an even greater burden on ratepayers.
I know this is not good news. Still, I wanted to thank all of you for contributing to our city. Your rates enable us to do the work we do to keep Porirua a wonderful city to live in. I believe together as a community we will get through these tough times and as your Mayor, I will continue to work hard for you and lobby the Government to change the way local government is funded.
16 Jul 2024
