Councillors will today discuss and adopt its 2022-23’s annual plan for consultation with the community.
A report from council strategy and policy manager Rhiannon Suter said the council had forecast a rates increase of 4% for the second year of its long-term plan.
However, because of changes on its capital programme, the council was now proposing a rise of 7.78%.
It was an average increase of $193 a year, or $3.71 a week, she said.
‘‘Covid-19 has had a significant impact on the construction market. Demand for contractors to complete work is high,’’ the report stated.
‘‘At the same time, there are supply chain delays and rising costs. This is making it more difficult to complete the work in our capital programme.’’
As a result of those changes, the council estimated 70% of the programme would be delivered in the next financial year — 5% less than originally planned.
Projects such as the Branxholme pipeline upgrade, the inner-city streets upgrade and the proposed $75million for the redevelopment of Te Unua or the new Southland Museum and Art Gallery were among projects significantly affected and consequently, influenced by the proposed council’s rates hike.
The council’s 2022-23 annual plan included an increase in capital expenditure, from $45.4million to $72.6million and operational expenditure of $115.9million, $5million more than the $110.9million forecasted in the long-term plan.
‘‘In the long-term plan, the rates revenue was forecast to be $62.6million in 2022-23. This will rise to $66.1million.’’
Councillors will discuss the document today and, if approved, it would go out for consultation on Thursday.
The final version of the annual plan was expected to be adopted by June.
