Proposed rates rises ‘still ungodly’, mayor says

Bryan Cadogan. PHOTO: ODT FILES.
Bryan Cadogan. PHOTO: ODT FILES.
Clutha residents face "ungodly" rates hikes this year, as their council wrestles with uncertainty about Three Waters and its successor, Water Done Well.

Although overall rates are expected to increase by 16.61% from July, hikes for average properties in some of the district’s towns are expected to exceed 60%.

The figures emerged in Clutha District Council’s draft annual plan consultation documents yesterday, during its meeting in Balclutha.

In the plan’s opening message to residents, Clutha District Mayor Bryan Cadogan described the increases as "still ungodly", despite the council identifying savings of about 3% over previous, long-term plan projections.

Topping the rates rise table are Milton, Waihola, Clinton and Tapanui, all of which can expect rises of more than 60% over the current 2024-25 year for a typical sample residence.

That would leave an average Milton household paying almost $2000 more a year, up to $4891 from $3021.

Average Stirling and Balclutha ratepayers top the table for biggest bills, at $4975 and $4901 respectively, with Milton in third.

Rural properties in general can expect the lowest percentage hikes, ranging from 10.1% to 10.5%, although they already pay more on average than urban residents.

Mr Cadogan said the increases were down largely to infrastructure spending on water, roads and waste management, which comprised about 89.4% of the rise.

He said the situation was "dire" and "extraordinary", and was hampered by overlapping obligations to plan while information about key government initiatives like the Three Waters replacement Water Done Well remained incomplete.

"This year’s annual plan is the most extraordinary process New Zealand councils will ever experience, with the usually dominant annual or long-term plans having to share the spotlight with the critical Water Done Well consultation.

"Add to this further cluttering of the system with councils being muzzled from July 11 when pre-election restrictions exclude [us] from undertaking any consultation."

He said, despite the challenges presented by the situation, Clutha remained in a stronger position than most councils.

"By going through the exhaustive long-term plan process last year our council is in a far stronger position. Having faced up to the harsh reality and some challenging budgets we have been able to plot with greater certainty.

"[This] will enable our district to focus on what will be a colossal decision when, in May, we ... try and formulate our stance after consultation on the all-important Water Done Well."

Submissions to the annual plan will close on April 14 and hearings take place on April 30.

The council will make final decisions regarding the plan on May 15.

richard.davison@odt.co.nz