Changes cause of council concern

Flooding in the Waitaki district so far this year would have cost ratepayers dearly if proposed changes to New Zealand Transport Agency subsidy rates had been in force.

So far this financial year, the Waitaki District Council faces flood damage repairs of $1.83 million, which includes the agency subsidy.

But if the changes the agency has been looking at were applied, the council would pay an extra $500,000.

That would have to come from its maintenance budget, from disaster funds or from ratepayers.

To qualify for funding from the agency, emergency works from 2015-16 would have to be more than 10% of a council's annual roading programme - in Waitaki's case, $760,000. Only one event this year would have qualified.

Council assets group manager Neil Jorgensen said this was the council's greatest concern about funding changes.

Along with that, the council also faced a reduction in the funding rate from the NZTA for normal road works.

The council at present received 59% towards the roading network, made up of 56% for operational and 66% for improvement works.

The change would result in one rate of 59% applying from the 2015-16 financial year, reducing 1% a year from then until the target rate of at least 52% was reached.

That 1% equated to a $76,000 reduction.

Mr Jorgensen said the progressive reduction would have a cumulative effect on roading standards without greater savings, efficiencies and alternative funding sources.

The council was already very concerned about the standard of its roads, under significant pressure from climate change, land-use change and more heavy vehicles.

''The council would be very worried about the effects of any level of service drops on our network. Any reduction in funding would likely be made up locally from rates,'' he said.

The other risk was the need to use normal maintenance funding to repair flood damage, further affecting roading standards.

In the 2014-15 annual plan, the council is considering adding funding to its roading programme through a project called Waitaki Rural Resilience Project.

The project was to reduce damage to roads from flooding and help mitigate future emergency works costs to the community, Mr Jorgensen said.

 


Around Otago

 

Cental Otago: Bridge replacements major expense

South Otago: Could push rates up 7.2% 

Southland: Council 'can live with' reduced funding level

Queenstown: Affordability a major issue 

Dunedin: Funding better than expected 


 

 

 

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