Proposed rates rise reduced a little more

The Waitaki District Council has had a second go at next financial year's budget, and managed to carve a small amount more off its proposed draft rates rise.

On February 26, after first going through the budget, the council ended up with a proposed 7.2% increase in its total rates take. Yesterday, after a second intensive session, it reduced that to a proposed 6.43% increase.

That will be close to the final figure to go out for public consultation when the council meets on March 26, to adopt its draft annual plan.

Some councillors were hoping to get it down to 5%, but that was still not enough for one ratepayer.

Jenefer Haig told councillors at the public forum before yesterday's meeting that she wanted them to show even more financial restraint.

Any increase should be no more than the rate of inflation, at 2% to 3%.

Superannuitants, who had recently received an $8 a week increase in their national superannuation, had to put restraints on their budgets - and the council should do the same, she said.

After its initial budget meeting last month, staff worked on further options for councillors to consider reducing that further.

They were helped yesterday by a property revaluation that resulted in a saving of $53,000 in depreciation, reducing the proposed increase to 6.93%.

An ecological study to provide information for future district plan variations costing $70,000 was transferred from rates to a loan, reducing the demand on ratepayers.

The council reduced the heating, lighting and electricity budget for the Oamaru Library by $10,000, but declined to make further cuts that would have affected staffing, the Palmerston Library and a project to catalogue all books in branch libraries.

Other smaller cuts were made, which reduced the rates demand further.

Based on yesterday's figure, the council proposes to collect almost $23 million in rates during 2008-09, compared with $21.548m in the current financial year.

The proposed 6.43% increase in the total rates take is less than the 6.8% the council signalled for 2008-09 in its long term council community plan prepared two years ago.

However, the impact on individual properties throughout the district will vary.

Some urban properties will have rates increases less that the 6.43% proposed, but those in Oamaru will have slightly more, because of an increase in the town's amenity rate which pays for new footpaths, stormwater, kerbing and channelling.

Commercial properties in Oamaru would also experience increases about the draft proposed.

The council has also increased some of its fees and charges.

After the council adopts the draft annual plan on March 26, it will go out to public consultation from April 12 to May 13. Included in that will be public meetings at Palmerston (May 1), Oamaru (May 5) and Kurow (May 7).

The council will make a final decision on the annual plan on June 10 and adopt it on June 24.

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