ORC targets nil rates increase

Hilary Calvert. PHOTO: STEPHEN JAQUIERY
"We are not asking households to pay any more on average next year than they already pay" — chairwoman Hilary Calvert. FILE PHOTO: STEPHEN JAQUIERY
A zero-percent rates rise for Otago has been demanded by regional council chairwoman Hilary Calvert.

At yesterday’s Otago Regional Council meeting, councillors voted 10-1 to back Cr Calvert’s resolution that staff prepare a draft annual plan work programme and budget with zero rise in rates.

Cr Calvert said individual rates might change but the average rates take across the region for the 2026-27 year would not increase.

"We are not asking households to pay any more on average next year than they already pay," she said.

The council was committed to the most efficient use of rates and staff were prepared to deliver a zero-increase budget without reducing services.

"The proposal set several years ago was for the rates to go up 14% from July next year," Cr Calvert said.

"This is not acceptable to me and, I understand, to my fellow councillors. At heart this is about value for money."

Cr Calvert said she did not intend that the council "kick the ball down the road" by deferring work — rather, she hoped the council could further scrutinise spending when its long-term plan process begins next year.

Cr Alan Somerville was the sole vote against the proposal; responsible council expenditure meant spending money when necessary, he said.

"That means that the starting point for figuring this sort of thing out should not be some figure, but should be the important work programmes."

Council chief executive Richard Saunders said Otago’s "complex-ish" rating model complicated matters.

"It is very difficult, if not impossible, to achieve that ‘no increase for anybody’ because of the way targeted rates operate," Mr Saunders said.

"But it is, in my view, achievable in terms of overall."

Sweeping changes to local government announced on Tuesday, including elimination of regional councillors, possibly before the end of their term, were mentioned throughout the meeting.

Cr Kevin Malcolm said Cr Calvert’s resolution continued work towards an "exceptionally good" regional council.

"May we have time to ensure that we can carry that full task right out."

Cr Kate Wilson was absent from the vote.

In a pre-recorded message to the meeting which was held in Cromwell, Central Otago District Mayor Tamah Alley said she wished she could be there to give councillors "a big hug after the beating" they had taken from central government.

Further details on the annual plan would be considered at a December workshop.

It is expected to be adopted in May.

ruby.shaw@odt.co.nz

 

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