Cr Kevin Malcolm said without the annual dividend from the Otago Regional Council-owned Port Otago to offset rates, the rates the council collected would be "above average" among regional councils.
A Morrison Low review of the council’s "efficiency" found despite significant growth in operating spending the council maintained one of the lowest spends per person across regional council sector.
When the efficiency review was presented to councillors this week, chief executive Richard Saunders said Morrison Low’s analysis indicated the council was "likely to be operating economically".
Mr Saunders’ report to councillors on the review said the recent "deliberate growth" in the size of the council, and the resulting increased spending, was part of a broader trend, as all regional councils took on more responsibility.
"So, while ORC’s expenditure has seen significant increases it still sits below the national average for operating expenditure per capita across many of its activities," he said.
"In terms of total employment costs per capita ... ORC was at the lowest end of the range until the end of the 2020 financial year, when it began its deliberate growth path.
"Despite this growth, ORC remains under the national average for employment costs on a per capita basis.
"Based on available data, Morrison Low determined that ORC’s average rates are the third most affordable across the regional council sector in Aotearoa New Zealand."
Cr Malcolm said the analysis did not present the full picture.
"You will recall that when we were given a summation of this report from Morrison Low that in fact they had not included the port [Port Otago] dividend on the rate take."
He said without the Port Otago dividend there would be another $120 rate requirement on each ratepayer — "that would have put us above average as opposed to below average".
Cr Gary Kelliher cautioned against thinking the review gave the council license to spend more.
"It’s lovely to know that we have one of the lowest spends per population — that should not be a mandate to go chasing around lifting that."
Councillors called on Mr Saunders to bring the report back to councillors once staff were able to provide a response to the recommendations made by Morrison Low.
Mr Saunders said it was the consultants’ view that by implementing their recommendations, the attention of the senior leadership could shift away from analysing finances and managing budgets to better managing work programmes and results.
Port Otago paid the council a $14 million dividend this year.
