An Oamaru ratepayer has warned of a mass revolt against paying rates as the Waitaki District Council yesterday started to grapple with cutting a draft 14.88% rates increase next financial year.
Ray Henderson described the predraft rates increase as unbelievable and ludicrous.
He warned the council yesterday he would be a strong proponent of a mass rates revolt unless the rates rise in 2009-10 was in line with inflation.
That would bring the council to a halt and someone would come in to sort it out, Mr Henderson said.
The increase in the council's operating budgets, that is, the day-to-day cost of doing business, added 6.88% to the rates for the next financial year.
Proposed projects increased the overall rise to 14.88% before councillors started making cuts. That would mean collecting $26.3 million in rates next financial year, compared with almost $23 million this year.
Councillors had difficulty reducing the increase in overheads, even before they started looking at new projects.
Cr Helen Stead questioned how councillors could make changes to those. Cr Gary Kircher replied the only way was to reduce the level of service to ratepayers.
Mr Henderson, at the public forum before the meeting, accepted the draft budget was a starting point, but the "disgraceful" 6.88% rates rise to cope with increases in operating costs alone was well above inflation.
Some Oamaru people's incomes would drop this year. For example, his main income was from investments and would fall because interest rates had dropped.
Mr Henderson pledged to send information on the council's budget to new Minister of Local Government Rodney Hide.
In particular, he focused on the proposal to increase council staff by 17 fulltime equivalents. Salaries, wages and consultants already cost $6 million a year, more than 25% of its rates take.
He suggested that, in some areas, volunteers could help out during the current recession.
There was a large population of elderly people in the district who might be prepared to throw a few hours in, he said.
The proposal for 17 new staff is spread over a 10 year period, with two proposed for the next financial year.
Yesterday, the council decided to add an information and technology cadet and a building control officer for plumbing and drainage to next year's budget, both funded out of existing budgets, not rates rises.
A museum registrar's position was also included from 2009-10, but will be funded from bequests to the North Otago Museum.
It decided to add a water engineer in 2010-11 and a graduate operations engineer in 2011-12, both funded from rates.
They are needed because of the workload of upgrading about 20 water schemes in the district to meet the Government's new drinking water standards.
One issue facing councillors in terms of current overheads was the natural increase in wages and salaries and the cost of retaining staff.
That included paying staff more as their qualifications increased.
Cr Jim Hopkins described that issue as "the elephant in the room", in terms of adding to council costs.
Cr Alistair Mavor said it was one of the costs of keeping staff.
New projects proposed for 2009-10 would need $1.827 million from rates. New roading projects, totalling $991,000, was the big ticket item in the new budget.
Roading projects put forward had a big impact on rates, assets group manager Neil Jorgensen said.
The next biggest item for new projects was $296,000 for parks and reserves, followed by $256,000 for economic development, $144,000 for the regulatory department, $130,000 for water and waste and $90,000 for planning.
This is the first round in setting the council's budget for the coming financial year, and establishing at what level to set the district's rates.
