At yesterday’s Central Otago District Council (CODC) meeting, councillors approved the draft 2024-25 annual plan, written by chief financial officer Vibhuti Chopra.
The draft annual plan proposed an average rates take increase of $9.9 million — or 21.4% — in the coming year.
The accompanying consultation document, "Facing Our Reality", said the "ever-changing Three Waters landscape" compounded stress from the rising costs of interest, insurance and energy.
Operating costs of drinking water, wastewater and stormwater, the Three Waters, accounted for more than half the rates rise — $5.6 million.
The CODC joined other Otago councils in delaying its long-term plan for a year, instead making an annual plan for the coming year and a nine-year long-term plan (LTP) instead of the usual 10.
Central Otago District Mayor Tim Cadogan said the council made a responsible decision and produced an honest budget.
"There’s no question that this is an increase that I never thought, as mayor, I would ever be looking at," he said.
"But I’m, at this stage, satisfied that there’s not really much meat left on the bone to pare off."
The council would have a closer look at appropriate levels of service when the LTP was developed next year, Mr Cadogan said.
"Whether there are things that we can be doing without ... that’s going to be the conversation for the community next year."
Deputy mayor Neil Gillespie said short of cutting services, the council had few options left to address costs.
"[It is] a bitter pill for us to have to swallow. I would love to be able to say I found the silver bullet to this but I can’t."
"We’re going to have an honest conversation with our community and hopefully help them understand why we’re proposing what’s being proposed."
Community consultation could provide solutions to the proposed rates increase, he said.
"I really hope there’s something out there that we might have missed — I’d be happy to have that pointed out to us."
Consultation on the draft annual plan opens tomorrow for a month. The council will hold virtual and in-person drop-in sessions across the district during the consultation period.
