The majority of councillors voted in favour of the increase yesterday as part of adopting the 2024-34 Long-Term Plan.
The increase is substantially higher than last year’s 5.9 per cent, led by rising costs faced by councils across the country.
The final figure has changed little since the initial number the council publicly consulted on – a 15.6 per cent average increase.
Said Broughton: “It has been a pretty difficult conversation with the community and for councillors about an increase that’s far higher than we’re used to.
“While the cost of living and cost of rates has been something that has been raised, so has planning and preparing for the future and thinking about a growing district so it has been a balance of those two matters.”
Forecasts show double-digit rates rises are set to continue until 2027, dropping as low as 3.6 per cent by 2033.
But Broughton admitted he did not expect it to get that low.
“Every long-term plan I see those (lower) numbers in years seven, eight, nine, they never actually eventuate.
"They’re the true numbers based on the information we have right now, but that’s two election cycles away and there will be new information to hand before we get to years seven and eight.”
Hioweverm councillors Elizabeth Mundt and Grant Miller both said the plan had too many “nice to haves” and not enough had been done to make savings, by either cutting projects or reducing operating expenditures.
“You’re asking our ratepayers to take on an approximately 45 per cent increase over three years,” said Miller, adding he supported spending on infrastructure where needed but not “gold plating” projects.
In signing off the LTP the council has set a cap for rates rises at 16 per cent for the next three years. The cap was set at 6 per cent when the last LTP was signed off in 2021.
Compared to Christchurch City Council, which was able to cut the initial proposed rates increase from 13.24 per cent to 9.9 per cent, Selwyn has not made the same reduction.
Broughton said much of the savings were found before community consultation.
“We’d already made quite a lot of savings ahead of going to out the community with our draft.
“Through consultation, we heard that our community wanted to continue with a whole lot of things that are important to them.”
A record number of people gave feedback to the plan with more than 1500 submissions, up from 660 in 2021.
Due to how rates are calculated, depending on the value of a property, the rates increase may be larger than the average. For a $847,000 home with sewage the rates increase will see a 15.8 per cent rise, while some rural properties could see rises higher than 20 per cent.
The future of some of the council’s transport projects are also still up in the air.
Almost $60 million of projects remain uncertain as the council waits for NZ Transport Agency Waka Kotahi’s approval.
In the next three years, nine major capital projects – each valued at $2 million or above, totalling $38.18 million in project costs – are banking on co-funding. There is also $20.56 million in minor projects relying on co-funding.
For most projects, NZTA co-funding equates to 51 per cent of the budget. If they are not funded the council can decide to abandon the project, cover the cost or reduce it.
The council will find out the result of co-funding in coming months.
