Rates increases need to stop: mayor

Mayor Nobby Clark. Photo: ODTfiles
Mayor Nobby Clark. Photo: ODTfiles
Invercargill ratepayers could face a double-digit increase on their rates for the next financial year, but Mayor Nobby Clark says he will fight against it.

Speaking to the Otago Daily Times yesterday, Mr Clark said councillors would have a workshop later this month to discuss the next annual plan, including a discussion about the proposed rates increase for 2024-25.

Council’s management suggested an 8.5% to 10% increase, while other elected members raised a 3% to 5% increment, but his personal preference was the increase should not be more than the CPI inflation which was 2.3%.

"We’ve got cost of living pressure on families and anybody that tells me they’re not impacted by increased power, fuel, grocery and rate increases, then I don’t know who those people are.

"I get a lot of feedback from low-income families and from middle-income families who say ‘every time we get our rate bills, it just seems to go up and up’ and this needs to stop."

Rates were only part of council’s income - he acknowledged it was the "biggest chunk" - but the council could also be borrowing and have revenue from the prices for its services and the return of investments.

Mr Clark, who is not intending to stand for mayor again, believed the key to keep rates down was to have a close look into the council’s internal finances.

It did not mean there would be staff cuts or projects cancelled, but a "reshuffle" on their operating costs as done by central Government.

"For example, the amount of consultant payments that we’ve made so far this year, given that we’re seven months into the year, it’s probably in excess of $1 million and that’s an eye-watering amount - it just seems to me that it’s too easy just to have rates compounding.

"It means that we would have to cut our cloth.

"It might be that as staff leave, and we have ... probably between 10% to 13% turnover per year. So that’s 40 to 50 staff leaving our organisation each year.

"You then start to ask yourself, can I afford to re-employ somebody to fill that vacancy or do I try and juggle things around and hold that vacancy for a period of time till the environment becomes a bit better?"

Reviewing operating times of facilities was also an option.

Mr Clark said chief executive Michael Day told him he and his team were focused on keeping costs down, but he believed the councillors should change the approach to the rates increase.

"We should just say to the chief executive, the most that we can give you this year from a rate increase is 2.3% and you go away and manage that in whichever way you have to manage it.

"For example, does a library need to be open seven days a week? Could it be open six days or five days?

"I don’t have the answers to any of those things, but those are the things that we should be asking, because we can’t afford to keep going the way we’re going."

luisa.girao@odt.co.nz