In order to keep Cromwell rates down, projects such as the Bannockburn Hall upgrade will be put on the backburner.
The Cromwell Community Board yesterday faced imposing a potential rise of 14.4% in the ward component of the rates, but managed to whittle that down to 10.5% by deferring spending on upgrading footpaths and the hall.
Bannockburn's 100-year-old Coronation Hall was closed in March last year and earmarked for demolition due to the earthquake risk it presented.
It was estimated to cost $1 million to replace. However, the Cromwell Community Board decided to sell the hall to the Bannockburn Community Centre Management Committee Incorporated, which runs the hall, and provide a grant so it could be upgraded and strengthened.
That grant was budgeted for years one and two of the board's 10-year plan but board members thought a rates rise of 14.4% in year one was too much, especially in the current economic climate.
Deferring the grant for the upgrade brought the rise down to 12.2%, which was then reduced to 10.5% by taking some of the money destined for footpaths and deferring that cost until year three of the plan.
Central Otago Mayor Tony Lepper said it was unfortunate but the big costs facing the board came from paying for core roading and water services.
Board members, though unhappy about imposing such a rise, said there was no way to avoid having to pay for those services unless they cut spending in other sectors.
"I don't like it but I don't think there's a lot more we can do unless we start cutting activities," board member Helen Hucklebridge said.
Another cost facing the board in year one of the plan was the need to get assessments for council-owned buildings in the ward which were deemed potential earthquake risks.
However, the ward has got off rather lightly, with only three buildings identified compared to the likes of the Vincent Community Board which had 12.
In the Cromwell ward, those buildings were the Cromwell and Tarras town halls and the soon-to-be-sold Bannockburn Hall.
The proposed rates increase will be forwarded to council to be included in the long-term plan.
Once the council considers the district component of rates, the increase for Cromwell residents could change.
