Council urged to reduce rates rise further

Waitaki District Council building. PHOTO: ODT FILES
Waitaki District Council building. PHOTO: ODT FILES
The Waitaki District Council has brought its rates increase down to single figures but has been urged to do more.

At a council meeting yesterday, the council approved its annual plan going out for consultation, which indicated an average rates rise for the forthcoming year of 8.1%.

It had initially been looking at a rates rise of more than 13% but some hard work from staff and trimming of some projects had got the increase down.

Council finance and corporate development group manager Paul Hope said after a discussion with councillors in a workshop, staff had looked at options to lower the rates rise.

The council staff had found some savings and worked hard to reduce the increase.

The council had agreed to unfund property depreciation and increased Three Waters depreciations while also holding Three Waters rates. Other minor savings had managed to get the rates increase down to 8.1%.

The council was under significant cost pressure from labour, fuel and machinery, which were all increasing, Mr Hope said.

When the long term plan was first worked out, the inflation adjustment built into it was between 2.5% and 3%, but inflation was now at more than 7%.

Cr Jim Hopkins said council had done good work to get the increase down but still many people would not be happy with the increase.

"There will be a perception in the community that we are part of the problem rather than being part of the solution," he said.

"We should not settle for this figure and we should challenge ourselves to carry on looking at that figure for now and up to June 30."

The council would be taking over the running of the Maheno water supply and Cr Hopkins questioned how much of an impact that would have on rates.

But Mr Hope said he would not reveal the impact it would have on rates. It would be an increase in rates but also an increase in ratepayers.

Under the long-term annual plan, the council did not have to automatically consult with the community every year.

But Mr Hope recommend it do so as it also had to consult around the Maheno water supply.

Waitaki Mayor Gary Kircher said plenty of hard work had gone on to get the rate increase down.

He pointed out local government did not have the advantage of central government, which had enjoyed an increased tax take when people received wage rises which pushed them into a higher tax bracket.

Local government did not enjoy that luxury.

Not everyone would receive the 8.1% rate rise as it was just an average, Mr Kircher said.

There were more ratepayers into the district as subdivisions came online, he said.