The public will have until mid-May to comment on the rail link suggestion and other spending proposed under the Council’s Draft Annual Plan 2007/08.
Regional Council Chairman Mark Farnsworth says the Council plans to spend $22M, including GST, over the 12 months from 1 July.
It proposes to collect $9.77M (incl GST) in rates – an increase of almost $1.16M or 13.4% on the current year – with the bulk of the balance of the $22M coming from investments and fees and charges.
Mr Farnsworth says this year’s proposed rates rise was spelled out last year in the ‘Northland Community Plan’, the Council’s Long Term Council Community Plan 2006-2016.
He says even with the proposed rise, total Regional Council rates will still remain relatively low, with an average annual bill of $122 (incl GST) for each of the 80,125 rateable properties on its books.
Mr Farnsworth says the bulk of the spending detailed in the Draft Annual Plan follows a direction previously set out in the Northland Community Plan.
However, the Draft Annual Plan also includes a new proposal to fund a one-third share in a $10M (GST exclusive) project to designate an Oakleigh to Marsden Point rail link corridor.
Although the total cost of the roughly 16km long rail link is estimated at about $120M, the Council is currently proposing only a $10M first stage – paid for over the next three years - to secure the route and provide some certainty to the landowners involved.
The proposed financing would see the Regional Council, rail network operator ONTRACK and Central Government each contribute one-third of the $10M needed.
Mr Farnsworth says the Council would need to spend about $1M (excl GST) to meet its first-year share of the designation costs and would find that money from Council reserves. However, if the designation went ahead, a new Regional Infrastructure Rate would eventually need to be considered to pay for the last two years of the project.
Mr Farnsworth says the Council believes a rail link is vital given the contributions the rapidly developing Bream Bay area makes to Northland’s regional economy through its port and other businesses.
An $800,000 feasibility study completed in 2003 for the Northland Regional and Whangarei District Councils had found that developing the link would offer a host of benefits, including helping to ease forestry-related traffic volume and congestion problems on the region’s roads.
“The study also found development of the rail link could create the equivalent of more than 200 fulltime jobs during the construction period and inject millions into the local economy. It could also help attract other big businesses to the Marsden Pt area.”
Mr Farnsworth says the Draft Annual Plan also contains a proposal to introduce a new Kaihu River Rate to fund river protection work on the Kaihu River.
The proposal comes after extensive community consultation and would affect about 400 landowners in the Kaipara District. The rate will net the Council about $138,000 (incl GST) over the next 12 months if approved.
He says the Draft Annual Plan submission process now gives all Northlanders a chance to have their say on the Council’s plans for the next 12 months, including the rail and Kaihu River proposals.
Meanwhile, the Regional Council is proposing to pay for another new initiative from its existing budget; the establishment of an Infrastructure Development Authority. The Authority would be the mechanism for funding future infrastructure projects.
Submissions on the Draft Annual Plan will be considered by Councillors in Whangarei in late May. Based on the submissions, any changes to the Draft will be incorporated in a revised Annual Plan to be presented to the full Council for adoption at special meeting in June.
A final version of the Annual Plan will then be printed and distributed in late July.
Copies of the Draft Annual Plan will be available from Council offices in mid-April - or the Council’s website www.nrc.govt.nz