Rates set to rise 3.4% after budget-pruning done

After a budget-pruning exercise, Central Otago ratepayers are likely to face an average district rates rise of 3.4% in the coming financial year.

Council corporate services manager Susan Finlay told councillors this week the figure was the best possible outcome after making cutbacks where possible.

''There will be no external debt - we'll be able to work within our reserves for this year.

"However, that is a deviation from the long-term plan and we wouldn't want to do that long-term,'' she said.

The total rate take in the coming year will be $24,849,165. Nearly half of that figure ($11,748,452) is made up of rates collected from the entire district;

the wards contribute the rest. Ward shares are: Vincent, $5,874,568; Cromwell, $ 4,594,035; Maniototo, $1,610,893; Teviot, $1,021,217.

Central Otago Mayor Tony Lepper said about 20% of the rate take would be spent on roading.

Some local authorities spent up to 50% on roading, which meant they ''suffered'' when roading subsidies dropped, he said.

The council has allocated $3.2 million to local roading in the coming year.

The two biggest items in this budget are seal resurfacing at $1.4 million and $1 million for metalling unsealed roads.

Half will come from a 50% New Zealand Transport Agency subsidy and the rest is funded through development contributions and rates.

Roadside spraying would be a priority this year, councillors were told.

Another council meeting will be held next week to consider the draft annual plan, which contains all the estimates, fees and charges for the coming year.

 

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