Tasman’s 10-Year Plan 2024 – 2034 proposes an average increase across the 10-year plan in rates revenue of 4.6% (excluding growth) with increases of 9.6% and 7.2% respectively (excluding growth) in the first two years.

The higher increases at the start of the period are the result of rising interest and insurance and changing Government requirements. In addition, depreciation (i.e. the way we spread the costs of the wearing out of assets over their useful life) has increased substantially as the value of the assets has risen. Over the last few years we have used funds built up in the past to reduce rates increases. These pots of funding have been used up.

Graphs to show proposed rates revenue increases(%) and net debt ($)

Note: With a growing population, each year the number of properties paying rates increases and the total revenue from rates increases as a result. The number of properties the Council provides services to also increases resulting in additional costs. When we refer to rates revenue increases in this document, they are generally referred to as ‘excluding growth’. This is because the rates revenue increase without the component funded by new growth gives a better indication of the impact on existing ratepayers in the District.

Net Debt

To deliver the proposed Plan, net debt increases across the ten years. Net debt per household is projected to grow by 25% in real terms or in other words, when adjusting for the impact of inflation. A proportion of this debt relates to infrastructure for housing and business growth and will be repaid by payments from developers. The remaining increase in debt however means that a larger share of the revenue collected from rates will be used to repay borrowing in the future.