Options to recover costs
To address the under-recovery of costs from consent applications we are proposing two options:
Option 1. Keep charge-out rates for consent applications the same and make up the shortfall from general rates reserve.
Option 2. Increase charge-out rates for consent applications as soon as practical.
Option 1 is not consistent with our Revenue and Financing Policy, where the costs for this type of work should be met by the individual or company that benefits. Option 1 would also mean that the shortfall would continue to be met from general rates and this may impact our ability to deliver other work programmes.
We prefer option 2, to increase charge-out rates as soon as practical, as this is consistent with our Revenue and Financing Policy (that is, the user-pays model) and reduces cost to general ratepayers.
Why change is needed
Our hourly charge-out rates have not increased since 2009/10 financial year, and so have not kept pace with increasing costs such as inflation.
The changes we propose would ensure the full costs for resource consent applications are borne by those who initiate or benefit from the activity i.e, user-pays, and this is consistent with our Revenue and Financing Policy.
