The long-term plan outlines what the council wants and has to do through to 2034. It also shows how it is all going to be paid for.
Gore District Council chief executive Debbie Lascelles pointed out the headwinds faced by the council in a report to yesterday’s council meeting.
The Ensign went to print as the meeting started.
The report showed how council costs in seemingly every department have risen, some by a considerable margin.
By the end of 2023, the cumulative impact of civil inflation was tracking 21% above the expected trend.
Operating costs had risen a cumulative 19% between 2020 and the end of 2023 as increases in depreciation and interest rates have impacted the council’s operating costs.
Rate rises between 2020-23 did not keep pace with these increases.
Nearly 90% of services provided by the council were required by legislation, so simply could not be cut.
The community did not want to cut any services, as that was part of the attraction of living in Gore.
Recycling was legislatively required to be introduced and could be delayed by only one more year.
The waste levy had increased, maintenance costs had gone up across the board and delaying them was just moving it down the road.
Insurances, legal costs, materials, chemicals and everyday office consumables had gone up across the organisation.
Depreciation and interest costs were still going up.
Fully funding depreciation of Three Waters assets was now legally required by 2028.
Staff salaries had not kept pace with local government benchmarks.
IT needed an overhaul as the system and was at the end of its life.
There were no new projects or initiatives in the plan, as the council runs in the red. However, Mrs Lascelles wrote the focus was on planning, strategy, and maintaining infrastructure.
The sale of assets was also brought up in the plan. Part of that means the sale of excess land, although any sales would also bring costs, as there is an expense to dispose of land.
Proceeds would help manage debt and reduce expenses associated with maintenance.
Also put forward was the potential canning of the running and funding of events in Gore.
Events like the Santa Parade would be cancelled and the council estimated a rate reduction of just about 1%, which would give the average household around 95c per week extra.
Sponsorship was suggested as an option to help keep these events going, though again that may bring additional expense.
