A projected average rates increase of 6.5 per cent is on the cards for Taupō ratepayers for 2021-22.

While this is about middle of the range for other councils in the Waikato, the Taupō District Council’s 2021-31 Long Term Plan, which contains the figures, also poses questions for the community on two major projects – new council offices and refurbishing the museum.

Both look like being shelved due to their impact on council finances and costs to the ratepayer.

While upgrading the museum and art gallery had already fallen off the list of preferences for the council due to the expense, it is now also presenting as preferred option leasing a council administration building (CAB), rather than spending around $33 million, funded by debt, to build new museum on a Tūwharetoa Street site.

Whether to build or lease was a significant issue during the 2019 local body elections with some candidates openly advocating for a review of the November 2018 decision to build.

The draft LTP says the location and design of a CAB would have to be negotiated between council and developer, but the design principles and functional requirements would still be the same if the council was to build.

It lists as advantages: flexibility if council structure changes in future, the retention of the Tūwharetoa St site for parking or other purposes and that the development risk (time and cost overruns) would sit with the landlord.

While there would be no increase in external borrowing or maintenance costs, the annual lease was expected to be around $850,000 (about four to five per cent of the cost of construction).

The cost of fit out and being tied into a long-term lease for which a ‘mid lease review’ could result in significant lease increases, were potential disadvantages.

Council staff have been spread around a number of leased offices in the town since September 2017 following the discovery of friable asbestos in its Lake Terrace headquarters.

Paying for a museum upgrade was expected to cost about $21.6 million, of which approximately a third would be funded by council debt with the rest from other sources, maybe including central government, grants and philanthropists – though the council admits no external funding for these two thirds has yet been secured.

While another delay in upgrading the museum would save on capital costs, the LTP contained the admission that ongoing protection, care and display of the district’s heritage was limited, with Ngāti Tūwharetoa in particular dispossessed from the opportunity to see displayed pieces held by other institutions.

It also meant a lack of access to resources such as archives, photographs, paintings and other collections.

However, it said, in the post-Covid environment outside money was likely to be hard to attract.

“Therefore it is proposed not to include a new museum in this Long Term Plan. It is intended to continue to seek external funding opportunities and to include a new museum in future plans if successful,” the document states.

The overall rates rise follows the TDC achieving a zero per cent rates rise for the previous financial year as part of its measures to soften the economic impact of Covid-19 on businesses and individuals.

Taupō Mayor David Trewavas said the council felt 6.5 per cent was reasonable, considering some regions were increasing rates by double digits.

“Following the global pandemic of Covid-19, we’ve had to rethink some of our plans and re-prioritise some of our projects and activities in an attempt to balance what we can afford while ensuring the Taupō district remains a great place to live...

“This will enable us to continue on with essential infrastructure work as well as those ‘nice-to-haves’ such as playground upgrades and town centre beautification.”

Other issues identified as among the top four in the consultation were the best way to fund council water supplies and how to manage the future of the Lake Taupō Protection Project.

The Long Term Plan 2021-2031 is open for consultation from March 15-April 16.

The consultation document is available on the council’s website and includes the ability for readers to make electronic submissions.

Credit: Stuff.co.nz