The figure was released at a Selwyn District Council workshop on its draft 2024-34 Long-Term Plan.
Ratepayers will get the chance to express their views on the projected rise through a council consultation process in April.
During the consultation, ratepayers will help decide the level of service they want from the district council – and what projects may get cut to reduce rates.
The rates increase is lower than what Mayor Sam Broughton warned of in December, when he said rates could rise as high as 20 per cent.
This was before he had seen any numbers from council staff. Now, the first draft numbers paint a slightly better picture.
Broughton did not respond to Selwyn Times when asked his thoughts on the 16 per cent rise and whether the district council would be happy to go to the community with the numbers as they stand.
The current 2021-31 LTP forecasts an annual increase of 6 per cent, which is no longer sufficient to maintain debt levels.
Last year’s rates rise was based on that projection, with an average rates rise of 5.9 per cent.
District council staff said there are several factors contributing to the higher rates rise, such as the current financial landscape with cost increases across the board.
It includes money it has borrowed, which has gone from 2.5 per cent to what will be a 6 per cent interest rate.
The district council is receiving a lower dividend revenue from Orion, of which it owns 10.7 per cent, with the remainder owned by Christchurch City Council.
Beyond 2024, rates increases are expected to remain high, with a 2025/26 forecasted rise of about 13 per cent, and a 2026/27 forecasted rise of about 11 per cent.
Over the 10 years of the LTP, the average rise is expected to be about 8 per cent.
Not included in the district's rates is any contribution to Christchurch’s Te Kaha stadium.
Christchurch Mayor Phil Mauger will be sending a letter to the Selwyn and Waimakariri district councils to ask for help to pay for it.
Broughton said last week it would seek feedback from the community over any funding request.
The district council will continue to tweak the draft LTP over the next two months, which includes finalising the rates rise before the draft goes out to the public for consultation in April.
As part of the consultation, ratepayers are likely to be asked for their opinions on several large projects including chlorination exemptions, public transport, and the construction of multiple community facilities.
- The draft LTP will go out for public consultation in April. To have your say register at yoursay.selwyn.govt.nz/register
Councillors on the forecast 16% hike
Selwyn Times asked Mayor Sam Broughton and councillors for their thoughts on the 16 per cent rise and whether they would be happy to go to the community with the numbers as they stand.
Rolleston Ward councillor Sophie McInnes: “My bank balance will be happier if the finalised increase is less than 16%, but I’m very aware that last year’s average of 5.9% actually set us back in terms of being able to complete necessary work. I have no problems with going to the community with this draft LTP though; that’s the process that allows residents to let us know what they think – which usually includes requests for additional capital projects!”
Malvern Ward councillor Lydia Gliddon: “This is a draft number but 16 per cent is particularly unsavoury. We still have work to do – at 16% this includes items our communities have previously told us they would like, and their thoughts may have changed – we need consultation feedback on what is and isn’t wanted. If our constituents are having to tighten their belts – we should too. It is our role to be fiscally prudent.”
Malvern Ward councillor Bob Mugford: “I am never happy with large rate increases and hope during consultation the community will tell us what levels of service they want in the future which will affect rate increases in the future.”
Springs Ward councillor Grant Miller: “I endorse letting our community know the true cost of the current and proposed services we deliver in Selwyn. The Long-Term Plan process is the opportunity for the community to either endorse this level of service or tell us which part of our service delivery they would be comfortable being delivered at a lower level of service (or not at all).”
Deputy Mayor Malcolm Lyall: “It is too early in the LTP process to make major decisions. I will always first listen to the public submissions before commenting. I will have the impact of any rate rises at front of mind during the process.”
Rolleston Ward councillor Phil Dean: "Any increase in rates needs to be measured. We as councillors have to ensure prudent spending. If the spending makes sense, is essential and needed, then we need to need to consider funding."
Mayor Sam Broughton, Rolleston Ward councillors Nicole Reid, Ellesmere Ward councillors Elizabeth Mundt and Shane Epiha, and Springs Ward councillor Debra Hasson did not respond to questions from the Selwyn Times.
