Message from the Mayor I’d like to talk to you The draft budgets approved by Council for consultation follow very closely the path and direction set out in the 2018-28 about Council’s Long Term Plan (LTP). 2019-20 draft So “What does the Draft 2019-20 Annual Plan and Budget Annual Plan. mean to you and future generations of Marlburians?” Please read this, ask questions and have your say. Council recently considered the draft budgets prepared by staff which included not only the budget for 2019-20, but also Council’s forecast financial position for the next decade. Council always looks ten years ahead because so many John Leggett of its activities are long term and decisions made today can have Mayor of Marlborough implications well into the future. What does it mean for Levels of Service? As a Council we are looking to maintain and where possible improve Maintaining the health of our environment is essential to protecting existing levels of service. So, for example, despite increased costs, the quality of life we enjoy in Marlborough as well as the viability of our beautiful parks, gardens and green spaces will be maintained to some of our key industries. at least current standards. As signalled in the LTP, levels of service Please see the table below for details of where Council is improving will be raised in some other areas, particularly in our Environmental service levels. Science and Monitoring and Biosecurity Activities. COMMUNITY FACILITIES CAPITAL EXPENDITURE PARKS, RESERVES, SPORTS ENVIRONMENTAL BIOSECURITY CONSENTS AND GROUNDS, POOLS, SCIENCE & MONITORING (PEST MANAGEMENT) COMPLIANCE CEMETERIES ETC. Capital expenditure is With the high levels Council is proposing to This is the first full year With the need to made to either, improve of growth being increase the levels of of implementation of implement the levels of service, provide experienced in the service in this Activity the Biosecurity Strategy Marlborough Environment for growth (which is in District, the funding as we must monitor and and the Regional Pest Plan, to adequately respond itself an improvement in available from Reserve analyse the trends in the Management Plan. Both to new Government levels of service) or and Community environment if we are these documents were initiatives, and cope with renew existing assets. Facility Development to have a sustainable separately consulted growth and complexity Contributions has future. Council also on last year. Council Council has increased its It has been assessed increased and is available has to respond to an is proposing to increase focus on these Activities. that of the $66.6M to improve facilities in the increasing number of the budget for this To meet the increased Capital Expenditure District. There is also the Government National Activity by $192,000 demands placed on budget, $29.7M relates to funding from the Small Policy Statements and to $1.7M. these Activities, Council improving level of service Townships Programme. National Environmental is proposing to increase and $15.1M relates to These additional Standards. its budget by $489,000 growth. funding sources mean a to $9.5M. Capital Expenditure in significant increase in the To effectively discharge turn leads to additional projects to be delivered its responsibilities maintenance costs, and in turn maintained. Council has increased depreciation and Council is proposing to the budget for this interest costs. increase its operating Activity by $348,000 budget by $1.05M to $4.4M. to $12.2M What does this mean for your rates? The forecast rates increase is 3.96%, which places Council in the The forecast movement in the index in the year ahead is 2.32%. lower third of proposed rates increases across NZ. The 2018-28 LTP The other major impact is from capital expenditure. forecast a 2019-20 rates increase of 5.72%. At the time the LTP was Last year Council spent a record $63M improving the District’s being finalised we promised that we would look for opportunities assets, especially Roads, Water Supply and Sewerage. This level to reduce rates, which we have done. of capital expenditure is forecast to continue for the next three years, We would like our increase to be lower but, like everyone, councils which will have significant flow-on effects on interest, depreciation are subject to inflation. In our case this is measured by the BERL- and operating costs. The combined impact of inflation and capital compiled Local Government Cost Index. expenditure accounts for most of the proposed rates increase. How much our $1.11 $1.02 69cents activities cost Roads and Footpaths Community Facilities Flood Protection per household per day on $1.40 $1.36 25cents average Sewerage Water Supply Library Services