ORC ponders rate rise and new HQ

A few election year nerves jangled at an Otago Regional Council meeting yesterday, when councillors recommended approving an 18.4% general rate increase, and a switch to a new headquarters within three years.

Cr Sam Neill told the council's finance and corporate committee some people might question the wisdom of supporting the proposed moves in a council election year, but the measures were, in fact, well founded.

It was not, as some might think, a case of ‘‘political suicide'', he said in a later interview.

In fact, a good deal of the extra general rate spending reflected the fact the council was listening carefully and acting on concerns voiced by the public during earlier public planning hearings last year, Cr Neill said.

Council chairman Stephen Woodhead said both the general rate rise and the plans to move to a new or perhaps a redeveloped heritage headquarters needed to be seen in their full context.

The council's general rate was the lowest regional council general rate in the South Island and was one of the lowest general rates in the country, and any proposed rate increase was, in dollar terms, relatively small and also from a low base.

For example, the annual general rate in Dunedin for a house valued at $250,000 would rise from about $39 to about $45 in the new financial year.

And Mr Woodhead noted the general rate amounted to only 13% of the council's proposed income for the next financial year.

This took into account income from council-owned Port Otago Ltd ($7.4million in dividends), several other sources of income, and spending from reserves ($8.3million).

Mr Woodhead said the council headquarters building was no longer ‘‘fit for purpose'', but taking steps to move into a new or refurbished heritage building would have little impact on rates.

This was for several reasons, including because money had already been set aside in a building fund, and further funds would also be derived from the eventual sale of the council's current Stafford St headquarters complex.

Recently tabled papers showed that general rates for houses with a capital value of $200,000 in the Clutha and Waitaki District Council areas would rise, respectively by $7.02 and $4.96 per annum ( to $35.46 and $33.97, respectively).

In the Central Otago District Council area the general rate would rise by $7.81 a year to $53.54, for a $400,000 property.

And in the Queenstown Lakes District Council area the proposed general rate for houses valued at $500,000 would rise by $7.52 to $56.68.

The council's earlier-approved long-term plan had projected a $246,000 increase in general rates.

The proposed further general rate spending, of about $744,000, to $6,340,000, reflected increasing Civil Defence staff numbers, particularly by hiring a welfare manager, a statutory requirement ($180,000); additional funding for natural hazard analysis ($170,000); and, more resources for rural water quality ($110,000).

A further $284,000 resulted from a reallocation of some funding for the Taieri and Lower Clutha flood and drainage schemes spending from targeted to general rates, after a recent independent review.

The proposed moves will be further considered at a regional council meeting on March 23, and will be subject to full public consultation, with hearings to be held in May for people wishing to speak in person.

john.gibb@odt.co.nz

Add a Comment