Waitaki is proposing in its draft 2012-22 long term community plan a limit on annual rates rises of the Cost Price Index (inflation) plus 5% a year.
It would apply to the total rates take, not to individual rates increases.
Because the plan is a draft, the rates cap will depend on submissions from the public (which open on April 10 and close on May 11), consideration of those and the final decision made by the council before the end of June.
Yesterday, councillors were asked to include the cap as part of a section in its plan entitled "Affordability of Rates".
That came at the insistence of the Office of the Auditor-general which had asked for changes to the draft plan before consultation.
Financial services manager Paul Hope acknowledged the council had not had the chance before yesterday to discuss and set a rates cap.
However, he hoped councillors would be comfortable with the proposal of the CPI plus 5%.
A table with his proposal also estimated the average residential rate against median income for the district, which the council is proposing to keep below 5%.
The draft residential rate for the next financial year was $1952, 4.11% against an estimated median household income of $47,533 in the district. In 2017, the rate was $2227, 4.17% of a median income of $53,466 and in 2022 $2450, 4.07% of $60,197.
Some councillors, as well as Waitaki Mayor Alex Familton, were not sure about the figure, but accepted it was in a draft plan that was subject to public consultation and could be changed when final decisions were made.
Mr Familton then said it was "a reasonable holding position" until the council made final decisions on its long term plan. Cr Helen Stead felt the figure was "very generous".
The draft increase in total rates for 2012-13 financial year is 7.4%, so the proposed rates cap of CPI plus 5% covered that.
Chief executive Michael Ross said the council would not want to place "too tight a noose" on itself without some flexibility in the future.
He also pointed out any rates increase was always subject to public scrutiny through the submissions process.
Cr Jim Hopkins said the proposed cap was part of a draft plan and people could say whether it was too high or low.
