Tony Caldwell
A shortfall in proposed funding for the Waitaki
Development Board could result in a rates rise next financial
year higher than the Waitaki District Council wished.
The board is a company wholly owned by the council and
responsible for tourism, economic development and operating
the i-Site information centre and Oamaru Penguin Colony.
However, yesterday, the board told the council that it needed
more money next financial year than had been budgeted in the
council's draft 2012-22 long-term plan.
That could raise the rates rise forecast for the next
financial year, unless the council can find another source of
revenue.
A week ago, the council settled on a 7.44% rates increase for
2012-13 in a draft long-term plan, but the grant it allowed
for its development board came up short.
Yesterday, board chairman Tony Caldwell told the council it
would need $688,980 next financial year, $103,390 more than
the council had allowed in its draft plan.
That could lift the rates increase from 7.44% to 7.8%.
Waitaki Mayor Alex Familton and some other councillors have
already indicated that even 7.4% would be too much.
The council had reduced the funding because it planned to
transfer the economic development role from the board to
itself.
Mr Caldwell said that, even if the board lost the economic
development role to the council, it would still face many of
the associated fixed costs, such as building rental,
electricity among others. If it did not get more money, it
would have to reduce its services.
The council will consider the issue when it makes decisions
on the long-term plan.
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