The council needs to be "open about the challenges facing Waitaki in the coming financial year", the district’s mayor says.
Last week, along with councillors, Mayor Mel Tavendale faced the fury of a 500-plus crowd at the Oamaru Opera House in one of three community meetings on a proposed rates rise between 19% and 45% next year (see report on page 8).
Mrs Tavendale thanked those who attended the rates consultation meetings in Otematata, Palmerston and Oamaru.
"We know this is a difficult conversation to have, but it’s necessary to be open about the challenges facing Waitaki in the coming financial year.
"As mayor it’s my job to front up to the community and take responsibility for the decisions council has to make.
"The mayor and councillors are the ones who make the decisions, so it’s right that we show up and explain the situation to the community. In the end, we will decide on the rates as the elected representatives for the ratepayers."
The council had received hundreds of submissions on its annual plan, the most in recent years, as this newspaper went to print.
Conservative lobby group Taxpayers’ Union issued a statement last week calling the consultation under way a "stitch-up".
Spokeswoman Tory Relf noted councillors rejected consulting ratepayers on a 9% rates increase option and instead were only presenting options of 19%-45%.
While "budget adjustments" could not be avoided in the district in order for the council to fulfil its water delivery requirements, "efficiencies could still be found elsewhere".
"The real scandal is that council apparently knew there was still a lower option and chose not to put it to the public."
In response, Mrs Tavendale said the council’s long-term plan had forecast a 7% rates rise next year — but that increase was forecast in July last year when the Official Cash Rate was about 3.25% and falling, and inflation about 2.7%.
"That’s not the uncertain, cost increasing, financial situation council finds itself in now. In the last three months we’ve seen fuel prices rise dramatically, affecting our existing 2025-26 contracts.
"Looking ahead, potential 30% increases for delivering our road and water maintenance programmes, as well as our mandated water infrastructure upgrades, mean council must ensure it has enough money to fund the essential infrastructure and services in the 2026-27 financial year."
In recent years the council had "artificially kept rates low" in the face of increasing costs and government-mandated investment in infrastructure.
"Councils have the real-world responsibility of delivering services, upgrading infrastructure and complying with government legislation — and finding the most financially sustainable way to fund that with the limited options available to us," Mrs Tavendale said.
The rates consultation closed on Wednesday — Additional reporting Jules Chin
