Benhar and Tokoiti ratepayers might get some relief if they have difficulty paying rates for new sewerage schemes in their towns under the Clutha District Council's proposed policy of offering postponements.
But the "draft policy of rates postponement" under consideration for Benhar and Tokoiti ratepayers has to follow a lengthy process to be adopted.
Both townships face substantial rate rises to pay for sewerage schemes - Benhar's estimated at about $1 million and Tokoiti's at $575,000.
The costs have caused consternation among some ratepayers who anticipate having trouble paying.
The council's corporate services, at its meeting on Thursday, recommended council adopt the rates postponement policy at its next meeting on September 22.
If the council does adopt it, the policy will go out for public comment before a final decision is made.
Corporate services manager Alan Dickson said ratepayers in the townships were likely to face significant rates rises to fund the capital costs of sewage disposal schemes.
The draft policy would provide the option of postponing payment of sewerage capital rates, but ratepayers would have to prove they faced severe financial hardship.
Before applying, ratepayers would have to get budget advice and make results of that available to the manager of corporate services, who would make a decision, which still could be appealed to the council.
Rates postponement would be for five years, with a right to reapply. If a property was sold, postponement would cease and the ratepayers would have to pay the rates, plus fees and interest.
The draft policy established strict criteria, including:
• Ratepayers must be the owner and occupier of the property.
• They must not own any other rating unit, investment property or substantial assets.
• They must receive budget advice and make results of it available to the council.
• They must satisfy the council they would suffer severe financial hardship if the rate was not postponed.
Each application would be considered on a case-by-case basis.
The council is also considering changing its funding policy for sewerage schemes and any proposed changes would also go out for consultation.
