The rates rise being faced by Central Otago district ratepayers could be 7%, not the 5.7% approved this week by councillors - but more trimming could yet see the rise come down again.
The increase arose after the draft long-term plan was sent to the Office of the Auditor-general. While Central Otago District Council corporate services manager Susan Finlay told councillors at their meeting on Wednesday she could not explain the rise, she expected the final rise would be smaller than 7%.
Feedback from the auditor's office, requiring the draft plan to be amended, arrived the morning of the council meeting where the draft plan was approved, meaning councillors had not seen the final copy of the draft plan before approving it.
However, Mrs Finlay talked them through the list of changes to be made.
Since the meeting, she said the rise in rates was due to water meter income budgets.
"When we were looking at the 5.7% [increase] it was only the rates revenue line, meanwhile water meter income budgets had increased at the same time by $625,000. Now that it is all lumped together it equates to a 7% increase."
The feedback from the auditor's office required certain things within the draft plan to be highlighted or clarified, including making it clear that new volumetric water charges were rates.
The plan, which is being called the road map for the decade, explains the issues facing Central Otago - water quality, water and wastewater infrastructure upgrades, roading, levels of service, and earthquake-prone buildings, for example - and details what will be spent on those issues, as well as other things funded by council.
According to the plan, the council needs to collect $21.5 million in rates (excluding money raised from volumetric water charging), and borrow $4.2 million to keep the district going.
Central Otago Mayor Tony Lepper said he believed the plan was council's "first genuine attempt to look 10 years out and come up with accurate predictions of what the cost of living in Central Otago would be.
"Councillors have looked closely at what is essential for our communities and we have attempted to give our community a realistic view of what is required and what it will cost."
Ratepayers have until June 11 to make submissions on the plan. copies of which are available at council's main office and service centres, as well as on its website. A summary of the plan will be posted to ratepayers next week.
