The council needed to make it clear how they were working on increasing efficiency and prioritising spending given the ‘‘huge sacrifice’’ they were asking of ratepayers, Federated Farmers North Otago provincial president Otto Dogterom said.
Councillors approved increasing rates by 22% at a meeting last month.
Mr Dogterom said a ‘‘focus on efficiency and prioritising of services and spending has been lacking at our council’’.
‘‘It won’t be an easy process but every private business in financial difficulty has to follow the same recipe for survival.’’
His organisation was ‘‘very disappointed’’ with the increase, a ‘‘big proportion’’ of which would be paid for by rural communities.
He had previously called on the council to ‘‘abandon’’ its proposed rates hike.
The primary sector was ‘‘the economic engine of Waitaki’’ and the proposed options represented an ‘‘unsustainable financial burden’’ on the district’s rural businesses that were already facing ‘‘severe macroeconomic headwinds’’, Mr Dogterom said.
‘‘We question the narrative that a 19% hike is the acceptable ‘minimum’ baseline, particularly when this burden will fall disproportionately on farming operations ...’’
Another part of the problem laid with the government and the implications of Local Water Done Well reforms, which he said were a ‘‘watered-down version’’ of the Three Waters policy of the previous government.
‘‘If the timeframes to comply would be extended from 10 to 15 years the whole process would be a lot more affordable.’’
The short timeframes increased ‘‘costs significantly’’ due to a lack of capacity.
‘‘All the councils compete for the same resources hence the huge cost increases.’’
Mayor Mel Tavendale said evolving government requirements meant councils faced ‘‘significant compliance costs’’ to ensure water infrastructure met legal and environmental standards.
The rates increase would mean rural water schemes remained ‘‘functional, compliant and protected from major failures’’.
A 22% rise was ‘‘significant’’ and ‘‘many farmers are still working to stabilise their businesses after several challenging, low-profit seasons’’.
A large proportion of rates funding was ‘‘directed towards long overdue investment in core infrastructure that underpins the viability of North Otago farming systems’’, she said.
This involved upgrading and future-proofing rural infrastructure, including roads, culverts and bridges affected by severe weather events.
Allowing infrastructure to deteriorate would have ‘‘far more serious consequences for farm values and the district’s overall appeal’’.
‘‘I acknowledge that flat, capital-value based rating systems can feel particularly heavy for large landholders, even when large portions of the investment ultimately benefits farm logistics and resilience.
‘‘That’s why the council agreed to the 22% figure with strict caveats.
‘‘We have required staff to aggressively pursue operational efficiencies and savings throughout the 2026-27 financial year to help avoid future spikes and ensure ratepayer money is being used as efficiently as possible.’’
