Carterton District Council has updated its approach to the 2020/21 Annual Plan to acknowledge the effect COVID-19 will have on our local economy.
A paper is being presented at next week’s Audit and Risk Committee meeting which forecasts a slight deficit due to reductions in revenue and the desire by our elected members to keep rates increases as close as possible to the 1.2 per cent increase outlined in Year 3 of the 2018-2028 Ten-Year Plan.
This deficit will be paid for by our general reserves, which is from prior year surpluses.
The recommendation to council is that it approves the amended approach to the 2020/21 Annual Plan. The amended approach asks council to agree to the following:
- Increase average rates between 1.2% and 2%
- Deliver on services at levels that were intended by Year 3 of the Ten-Year Plan 2018-28 where possible given the ongoing national response to Covid-19.
- Continue capital expenditure on planned projects.
- Adopt a plan that is unbalanced in that revenues will not cover expenditure, ie: a small operating deficit is now estimated to occur for 2020/21
- Adopt a plan which will not materially impact on the balance sheet, ie: and which reflects an approach that is considered financially prudent in these circumstances.
Read the full media release here.