Proposed increases in water charges have been labelled "unacceptable" by the Roxburgh Community Board, which has asked the Central Otago District Council (CODC) to provide more information.
CODC accountant Trevor Goudie had recommended a 10.91% increase in the charge for extraordinary water use within the Roxburgh and Lake Roxburgh areas from July 1.
Larger metered properties over 1100sq m in both urban and rural areas that use water for non-domestic purposes such as the golf course will now pay 73.67c/cu m. The cost last year was 66.4200c/cu m. There are only two or three ratepayers in the Roxburgh area in this category.
Board members said the increase was unacceptable and the formula must be flawed as there had been a huge increase in the past few years from about 28c to more than 73c/cu m.
They have asked council to come back to the board with the formula used for charging before accepting the recommendation.
Mr Goudie said the formula used for water charges was based on the cost of production for the year divided by the amount of water expected to be produced in that period.
That cost was then compared to last year's rate, and the cost of production for Roxburgh was actually more than what was being charged.
The charge was being brought in over time.
Mr Goudie said the claim that water had been 28c/cu m in the past few years was not entirely true, as it was 39.4c/cu m in 2002/2003 and 43.48c/ cu m in 2004/05.
There were quite a few commercial properties over 1100sq m in Alexandra and Cromwell, and Cromwell also had some large residential properties in that category, particularly in the Bell Road area, Mr Goudie said.
CODC utilities services manager Peter Greenwood said council contractors looked after production and their contract prices were increasing at the rate of 7%-8% a year as the contracts were linked to the construction industry rates of inflation.
