ORC opts for zero rates rise

No general rate increase is planned by the Otago Regional Council in the coming financial year.

Last year's long-term council community plan listed a 2% rates rise for 2010-11, but the council's draft annual plan proposes no movement in the general rate.

However, the long-term plan's provisions for rates rises in targeted rating areas - including the Taieri, Clutha (drainage and flood protection works) and in Queenstown (new bus services) - remain.

The draft plan will be considered by the finance and corporate committee tomorrow and, if adopted, will go out for public consultation, with hearings in May.

It proposes a general rate take of $4.47 million, the same as the past financial year, which was a 1.2% increase on 2008-09.

The uniform annual general charge is proposed to be held at $12.70.

Corporate services director Wayne Scott said the "enhanced" investment returns and work on cost control within the council were the primary reasons the general rate could be held.

Higher than predicted interest income ($887,000 instead of $432,000) was available to help keep rates down, in part because of the deferral of the council's headquarters development plan.

The deferral also allows the special dividend from Port Otago of $12.7 million to be reduced to $6.8 million.

About $730,000 is budgeted for work in the Cumberland St to Dundas St reach of the Water of Leith, while work continues on finalising scheme estimates and on a revised implementation plan for the rest of the work.

Taieri ratepayers in the targeted flood and drainage scheme areas face rates increases of between 8.3% (lower Taieri) and 15% (West Taieri).

West Taieri liaison group members had not endorsed the proposed increase, suggesting instead work be paid for by the wider community rate or reserves until a rating classification review had been completed, Mr Scott said.

The Lower Clutha liaison group had endorsed the proposed rating level - an 11% increase - for the purposes of consultation.

The majority of targeted river management rates for the region were to remain the same, with increases for the Lower Waitaki River (33%) and Wanaka (10%).

See, not that hard

See it's not that hard, it just requires a little discipline on the part of the council - the DCC could learn from this rather than embarking on this ever widening spiral of spending too much and putting off important expenses to the future rather than budgeting them now and putting aside what will be needed.

For example we should be doing what any sane individual does faced with large expenses we should be preparing for the billion dollars we'll need to fix our water supply by putting money aside, and we should have saved up for the stadium and built it when we could really afford it - that way it would have cost a lot less, we would have made interest on the money we saved rather than paying more than $100m in interest on the debt we've created.

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