At its meeting in Alexandra yesterday, the Central Otago District Council approved draft budgets that will result in an average district-wide increase of 2.8%, down from the 5.4% projected in its long-term plan.
Deputy mayor Neil Gillespie said the lower rates were partly due to council ‘‘sharpening the pencil’’ on costs.
‘‘We’ve got a better handle on it and it’s not going to cost as much as we thought.’’
Cromwell’s slice of the community board chunk of the rates will decrease by 2.9%, whereas there will be increases of 0.1% for the Maniototo, 1.8% for Vincent and 7.7% for the Teviot Valley.
Board rates make up about 19% to 20% for most wards, except for Teviot Valley where it is 16.5%.
Stephen Jeffery said it was because the board gave out ‘‘way less grants’’.
Council chief executive Leanne Mash said every ward was different and the valley was more conservative in requesting board money.
Council revenue and financing manager Jamie Cunningham said taking averages was all the council could do, but it was misleading because no-one was the average.
Mr Gillespie said property owners such as diary farmers, whose values had greatly increased, would be ‘‘hit hard’’.
Mayor Tim Cadogan said the way rates effected people differed ‘‘significantly’’.
‘‘Overall, I think it’s a very positive result for the district.’’
Council chief financial officer Bernard Murphy said a few major projects were not included in the budget due to timing.
At the time of its creation, the Cromwell Community Board had delayed plans for the $5.4 million upgrade of its memorial hall, but agreed to proceed this month.
This could add at least $2.5 million to the council budget.
It also did not include funds for the upgrade of the Maniototo Health Services facility, which requested $2 million from council.
The council would consider different ways it could help fund the project.
The figures will be included in the council’s annual plan process and a consultation document
will go out to the public on March 31.
