ORC’s rate rise of 18% tests tolerances

Andrew Noone. Photo: ODT files

Urban households would pay the Otago Regional Council $30 to $70 more a year in general rates under the council’s draft plan for next year, the council’s chairman says.

The council is seeking feedback on its draft annual plan, which includes an 18% increase in general rates revenue.

But the proposed increase comes after ratepayers paid a 49% increase in rates in the first year of the council’s long-term plan, and another increase has proven contentious at the council table during recent meetings.

In a statement released last week, chairman Andrew Noone said the draft plan maintained the direction of "steady improvement" and catch-up work councillors agreed to during last year’s long-term planning process.

"We’re adhering to the agreed [long-term plan] financial strategy which supports a programme of improvements to meet growing expectations for Otago’s environmental management," Cr Noone said.

"Our total income has changed, largely reflecting funding of approximately $3million from central government for new environmental work requested since the long-term plan was developed.

"However, the need to fund our long-term work programme by increasing rates remains for 2022-23 as we continue in catch-up mode, and work solidly towards improving the way ORC manages our region’s precious assets of water, land, biodiversity, and air.

"Also, that ORC provides public transport for people in Dunedin and Queenstown."

He said the council was "very aware" that it had become tougher financially for many households and businesses.

The 18% rates rise would mean most urban households, which made up 80% of Otago ratepayers, would have an extra $30 to $70 per year on their rates bills, he said.

"For larger or higher value properties, such as farms or commercial operations, the dollar increase is more significant.

"So, we need to know from our community if the planned rates rise is affordable. And if people aren’t happy, what would we change?"

When council staff presented a draft plan in November that included a 20% increase, Cr Michael Deaker was among the first to object.

A 20% increase now would be "particularly merciless", the veteran councillor said.

Staff pared back the rates increase to 18% but still several councillors called for further cuts.

Deputy chairman Michael Laws was among that group and issued his own statement before councillors approved consultation now under way.

An extraordinary meeting was held at the end of last month to review next year’s spending, but no cuts were proposed.

The proposed total rates take for 2022-23 is $47.2million, up $7.2million from last year — $3.6million (18.1%) from a general rates increase and $3.6million from targeted rates.

In last week’s statement the council said the general rates increase, offset by a Port Otago dividend of $14million, related to services including freshwater and state of the environment monitoring, biodiversity and environmental enhancement.

The targeted rates increase related to services such as emergency management, pest management, drainage and flood protection.

In October, chief executive Sarah Gardner said she was concerned for her staff’s safety after rising incidents of aggression towards the council.

Outrage over rate rises was in part to blame, she said.

The public feedback period began on April 8 and runs to May 6, with information and submission forms available online and from council offices.

--  hamish.maclean@odt.co.nz