Dairy farmer ‘blindsided’ by $44,000 rates hike

Bovaer is the first widely commercially available product being used by farmers to slash the...
Photo: ODT files
A South Otago dairy farmer says he was "blindsided" by a rates increase of $44,000 this year, as ratepayers and community groups feel the pinch.

Hillend dairy farmer Andrew Metherell revealed the 93% hike during Clutha District Council annual plan hearings in Balclutha yesterday.

More than 30 submitters were present to speak to their submissions, including community groups seeking council grants, and urban and rural ratepayers concerned about rates affordability.

Mr Metherell, who does not live on his farm, said a lack of timely correspondence from the council and his local water scheme meant the first he knew about the near doubling of rates was his bill last winter.

He said a further 27% increase, expected from July 1, would mean a compounded two-year increase of 144% since July 2023, equating to $68,000.

This would make his rates bill $115,000 for the coming year, which was "unsustainable", even for a 440ha dairy farm, he said.

"Costs will have to be absorbed into the business as we can’t pass them on to anyone else. The increases are unsustainable, and we’ve been a bit blindsided."

The principal driver of the increase was the upgrading of the catchment’s water scheme, which experienced a $5.5 million blowout in June last year.

Urban ratepayers echoed Mr Metherell’s concerns, albeit on a smaller scale.

Milton resident Ron Cowie said the council was imposing "generational" debt on future ratepayers.

Ron Cowie
Ron Cowie
He said a jump in forecast rates for the town from about 16% to 26% was not acceptable.

"Once you set the rates, the ratepayers have to pay and, if they can’t, it has to be found off their mortgage, or by cutting food or other bills. It’s not an endless pool of money."

He said the council appeared to be viewing debt caps for water infrastructure upgrades as targets rather than extreme limits.

"We don’t need a gold-plated water network. Bronze would be fine."

Among community groups seeking council grants was the Clutha Budget Advisory Service and Food Hub.

Manager Lee-Anne Michelle said rates were a significant worry for her clients and for the community at large.

Demand for financial mentoring and food parcels was increasing.

Of particular concern was the changing face of those seeking help.

She said 73% of mentoring clients were in paid employment.

Of those receiving food parcels, about 30% were not eligible for Community Service Cards, meaning they were working families who exceeded current government thresholds for financial and other assistance, but were still struggling.

The service and food hub was seeking a $25,000 operational grant to continue its work.

The council will make its final annual plan decisions on May 15.

richard.davison@odt.co.nz