Earlier this month, Waitaki district councillors confirmed a provisional rates rise of 6.47% for the 2022-23 financial year, down from a projected 8.53%.
But yesterday at a full council meeting, councillors approved a 7.47% increase to be included in the consultation document on the council’s annual plan.
Council programme manager Richard Maher said the increase was not something the council wanted to do, but the current economic environment and the increasing cost of almost everything for the council meant it was the responsible thing to do.
Staff had worked hard to find savings in other areas to keep the increase down, Mr Maher said.
Mayor Gary Kircher said roading was a major issue for councils and the amount of funding available from Waka Kotahi NZ Transport Agency was limited, so the cost fell back on to the council.
Inflation and the increasing cost of fuels were also having an impact, Mr Kircher said.
"This is a high increase but, when compared to other councils, basically we’re all facing these same challenge and same issues, unfortunately."
Cr Kelli Williams was concerned the council was not as focused on reducing the increase for commercial ratepayers.
"Commercial rates are ignored in the discussion and the difference is significant and I want to make sure we are slowing down the increase in commercial rates as well," she said.
Council finance and corporate development manager Paul Hope said there was a smaller increase for commercial rates last year and the council had fewer ways of decreasing them than it did for general rates.
Cr Jim Hopkins asked if the council should now slightly delay the consultation on the annual plan to get some certainty around the number, particularly because the council was still discussing its roading tender.
"The one thing we don’t want to do is go out and say this is the number and then two weeks later say ‘sorry guys, this is the real number’."
Mr Hope said the 7.47% was likely the best figure staff could present given the circumstances and there would be no greater degree of certainty in another week or 10 days.
Councillors also approved the engagement plan and consultation document for the annual plan, under which consultation will run from April 13 to May 4.
By Tim Miller
