There was none of the usual banter around the council table on Friday as a further rates rise was confirmed for Central Otago. Three weeks ago, councillors approved an 11.63% average increase and on Friday they agreed to raise that to 14.03%.
As that was an average figure some will be lower and others higher than 14.03%
Sombre Central Otago district councillors listened as chief executive Peter Kelly explained why the extraordinary meeting had to be called after errors were found in the figures presented in the long-term plan at the last council meeting.
Additionally, changes to the water contract would also inflate the rates increase, Mr Kelly said.
When the long-term plan work began a new spreadsheet was opened but the old one was still live, which resulted in figures for water costs going into the wrong one.
Water contracts were also being negotiated and when those figures were added to the long-term plan spreadsheet the staff member realised something was not right, he said.
The upshot for ratepayers was an extra 1% of rates rise that should have been known before councillors voted on the increase three weeks ago. Another 1.5% increase was because of the new water contracts, which begin on July 1, and that would have happened anyway, Mr Kelly said.
He took full responsibility for the errors and staff were working with Deloitte to ensure the council’s systems were robust and similar errors would not happen again, he said.
It did not help a key financial team member had left in December and not been replaced, he said.
It was due to the diligence of staff the mistake was found.
"In some ways it’s great that we did detect it when we did. If it was detected at a later date it could have been a lot worse for us in the sense we could have been out consulting on the wrong numbers," Mr Kelly said.
Cr Tracy Paterson said she was not sure if she and her fellow councillors could stomach another increase along those lines for ratepayers.
Central Otago Mayor Tamah Alley said it would be a tough time for some.
"Our communities are blessed. It will be a tough time for many but we are blessed, so we’ll go out with our consultation documents next month and talk to our communities."
Cr Nigel McKinlay said it was important ratepayers understood consultation was just one thread in the council’s decision-making process.
Cr Neil Gillespie echoed that sentiment.
"It’s not a popularity contest. It’s not a vote."
People needed to tell the council what they were willing to give up if they did not want rates increases.
"If they don’t tell us what they don’t want to have then you’re going to get what you’re going to get. There ain’t no magic sack of money anywhere," Cr Gillespie said.
Cr Cheryl Laws said there might need to be more user pays for council services.
Everyone wanted children to go swimming, but it might be that would cost more, she said.
Cr Gillespie said that would probably still target the same people who would struggle to pay higher rates.
Cr Stu Duncan said the rates were just the cost of doing business for the council.
"We have to deliver on behalf of the ratepayers the true cost of doing business."
People were moving to Central Otago in greater numbers than ever because everything in the region was almost new.
"We’re getting a lot. We might snivel at an increase of 2 or 3% over a lifetime but one of the reasons people moved to Central Otago was their rates were lower than where they came from."
One of the reasons for that was previous councils had probably under-invested, he said.
"If you want to grow grass, put the sprinkler on it."
The changes presented to the meeting were agreed to by all the councillors. There will be a delay in getting the documents to the audit that is required before public consultation can take place. It is now planned to open consultation following the council meeting on March 26.
