Western Bay of Plenty District Council has finalised its 2016-17 Annual Plan and struck a rates increase of 1.68 percent for existing ratepayers.

The total rates increase is 2.95 per cent, of which growth makes up 1.24 per cent. This is the lowest rate increase in more than 10 years and doesn't come at a cost to service delivery, the council says it a statement released this morning.

Western Bay of Plenty District Council Mayor Ross Paterson says the latest rate announcement 'great news for ratepayers”.

The Annual Plan sets out the work Council intends to do over the next 12 months, why it's doing the work and what it will cost. The plan reflects feedback from ratepayers during community engagement in March and April.

Western Bay Mayor Ross Paterson says the result is great news for ratepayers.

'In real terms this is an increase of just 0.08 per cent once inflation of 1.6 percent is removed.

'The surge in development has certainly helped us keep the rate increase to an absolute minimum. We have received a considerable increase in user fees and we have also reduced interest costs by $210,000 due to our ongoing commitment to reduce debt.”

Ross says the icing on the cake is a windfall of $1.91 million savings and surplus in Council's transportation budget across this year and next year, meaning an injection of an additional $1.5m into the seal extension programme over the next 12 months.

The balance of $411,000 will be put towards community roading and cycling projects.

'This brings the seal extension budget to $3.5m meaning we will seal up to 12km of unsealed roads this year. We haven't done this amount of seal extension for a long time and it's the first time since I have been in Council that we have some savings up our sleeve for roading.”

The $1.91 million is made up of Te Puke Highway renewal savings of $505,000; Te Puke Highway maintenance savings of $556,000 and additional unbudgeted income from the NZ Transport Agency of $750,000.

Council will collect $57.21 million in total rates for the financial year 2016/17, a reduction of $402,957 on the initial estimate.

Total rates of $57.21m are comprised of District rates ($35.32m); community board rates ($427,024); water supply ($6.27m), wastewater ($9,30m); stormwater $3.82m) and other targeted rates ($2.08m).

District rates totalling $35.32m are comprised of the general rate ($18.86m); town centre rate ($208,840); library rate ($1.73m); roading rate ($13,61m) and environmental protection rate ($900,000).

Council's total income has increased by $497,000 due to user fees and charges increasing by $967,000, reflecting the increase in development across the District. This increase in regulatory income from user pays has meant a reduction in the General Rate of $406,000.

Council's total expenditure has increased by $443,000 which includes an increase of $1.30m to employ more staff, particularly in the building and consenting areas to meet the increase in development activity.

This increase has been offset by reduced forecast depreciation interest and other expenditure, totalling $586,000.

Capital expenditure has increased from $29.42m to $41.28m. This includes $12.3m of uncompleted works carried forward from 2016 to the 2017 financial year.

The main projects planned for this year are a $250,000 upgrade to Council's animal shelters in Katikati and Te Puke and a contribution to a plan to boost broadband access, use and capability throughout the District. The planned $1.7m Ongare Point Wastewater Scheme has been deferred to the 2017/18 year.

Council will also be constructing a new $3.46m Library and Community Hub at Katikati. This project was consulted on through the 2015-25 Long Term Plan.

Other Annual Plan decisions

• $25,000 contribution to a sub-regional arts and culture strategy under a shared funding agreement with Tauranga City Council
• $180,000 for a concrete, multi-use Summerset Trail as part of the Katikati Cycle Trails network. This will be funded from the transportation surplus for community roading
• $489,000 for Te Puke Memorial Hall earthquake strengthening to be funded from the Te Puke Ward area of benefit rate
• $8,000 from the General Rate for new play equipment at the Dr North Memorial Reserve, Athenree
• $25,000 for employment of a contractor for monitoring freedom camping, dog control and parking at Waihi Beach, with particular focus on monitoring freedom camping at Anzac Bay where overnight camping is banned. The monitoring will take place from 22 December 2016 to 7 February 2017
• $1.3m for construction of Two Mile Creek bank protection works, downstream of Dillon Street Bridge at Waihi Beach. Funding jointly by Council (75 percent) and affected property owners (25 percent).