ORC rates not settled

Otago regional ratepayers will have to wait another three weeks to find out if their general rates will increase by 2.97% or 5.34%.

Normally, the Otago Regional Council's finance and corporate committee recommends a rates increase alongside its consideration of submissions, but it has not done so this year, because the council has yet to make a decision on investing $3.5 million in Tarras Water Ltd irrigation scheme's dry shares.

As a result, council staff will prepare two rates estimates for the full council meeting on June 26. If the council votes to invest in the Tarras scheme, the 5.34% estimate will be presented for adoption, but if it turns it down, the 2.97% estimate will be presented.

At this week's committee meeting, councillors could only endorse the annual plan hearing panel's recommendations.

Discussions about the Tarras investment were also off the table, as the hearing panel had prepared a summary of the 52 submissions on the topic for the council to consider at its next meeting.

The restrictions did not stop some from raising concerns over the proposed rates increase or the Tarras investment proposal.

Cr Doug Brown said councillors had to be very careful not to forget about the views expressed in the annual plan submissions when they made the Tarras decision.

Cr Michael Deaker said with inflation running between 0.8% and 1% and most ratepayers on fixed incomes, councillors needed to be very careful in making the choice between the rates increases.

''It's an old-fashioned view. There has got to be a very good reason for a rates increase 1% or 2% more than inflation.''

Cr Bryan Scott agreed, saying the council had to tread warily in making its rating decision.

Finance and corporate director Wayne Scott said councillors needed to be aware targeted rates formed the majority of the council's rates take, not the general rate.

The annual plan proposed the majority of targeted rates remained at similar levels to previous years, except for the West Taieri and Lower Clutha flood and drainage scheme areas where work was planned.

In one case, the Wakatipu transport rate was reducing significantly, due to the commercialisation of the public bus system, he said.

The committee endorsed the hearing panel's decision to turn down a request for the council to take control of Hoopers Inlet, on the Otago Peninsula, instead advising submitters they could unblock it themselves as a permitted activity or approach the council to set up a targeted rate to fund the work.

It also turned down funding for the Bee Friendly Farming Group, after Cr Gerry Eckhoff failed to get a seconder for his amendment to give the group $3000.

The committee approved the panel's recommendations that staff meet Enviroschools representatives and hold further meetings with tertiary student bodies about public transport issues.

- rebecca.fox@odt.co.nz

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