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Gore district ratepayers will face a 10.97% average rates increase after the Gore District Council adopted its annual plan for the next financial year at an extraordinary meeting yesterday.
This equates to an increase of between $4.75 and $6.86 a week for Gore and Mataura ratepayers. However, the percentage increase varies depending on a property’s capital value and rating category.
Last month when councillors were considering the annual plan they were warned the average rates rise for the coming year was 11.58%.
In a report tabled at the meeting, corporate support general manager Lornae Straith said one of the cost-saving measures the council took to minimise the increase in rates was to choose to fund only 70% of depreciation for the Three Waters activities.
"However, there are some unavoidable increases particularly in finance costs with the increase in interest rates on borrowing, wage inflation to attract and retain staff, and the increase in the waste disposal levy of waste to landfill from $30 a tonne to $50 a tonne set by central government," Ms Straith said.
During the discussion Cr John Gardyne said the council’s growing debt was "catching up on us".
"We need to address that in our long-term plan."
Cr Stewart MacDonell said there were only three options for dealing with council debt.
"Via depreciation, sell assets or rate.
"With debt the borrower needs to be the master and not the debt.
"To be the master you need to have a master plan and stick to it consistently."
Gore Mayor Ben Bell commended staff for their work on the annual plan.
Mr Bell said it was time for a rethink about the country’s rating system, which was "overdue for a refresh".
"We need to look at bigger, better funding options across the country."
He was "saddened" the rate rise was double digits.
"I do look across the country and we are in the middle pack, so we’re not irregular by any means."
Due to economic circumstances beyond the council’s control, the 2023-24 budget will be unbalanced by just over $1million.