In a 6-4 vote, the Waitaki District Council has agreed to consult the community on the potential increase it says is required to cover growing council costs.
Cr Courtney Linwood said while the 19% hike, which would be for the 2026-27 year, made her "feel very unwell" and "really worried about some of our community out there", elected representatives were between a rock and a hard place.
She wanted it to be known that it was a "tough decision".
Councillors considered options for increasing rates beyond the 7% signalled in the council’s long-term plan, at an extraordinary general meeting in Oamaru yesterday.
The Clutha District Council also decided last week to consult on an average rates increase of 20.6% in 2026-27, up from the 18.9% it signalled in its long-term plan, set in 2024.
Clutha District Mayor Jock Martin said new figure reflected "the complexities faced over the past two years".
Waitaki district councillors were given five rates rise options ranging from 9% to 45% and told even a 19% increase would only cover a reduction in the council’s $14 million deficit, and not any costs for water services, increased fuel costs or inflationary pressures.
To balance the books completely, a 45% hike would be needed.
A staff report to councillors said there were "several big changes" that councils across the country were grappling with, including rates capping, central government reforms and water services changes.
During the meeting elected representatives admitted the proposals would be a difficult pill to swallow for ratepayers, and raised concerns about their impact on the community, especially given the range of other cost increases people were already dealing with.
But they also warned of the dangers of "kicking the can down the road".
Cr Frans Schlack said he strongly believed that rates had been kept "artificially low for a couple of generations", adding that the council was now having to play catch-up.
The council needed to look at what could be done for the community with the rates rebates scheme, which just over 1000 people were entitled to, highlighting that funding came from Wellington rather than locally, he said.
None of the options were "very palatable", Cr John McCone, who voted against a 19% increase, said.
Also voting against it, Cr Jim Hopkins said he could not live with 19%.
Deputy mayor Rebecca Ryan said the council had a "real responsibility to protect future generations" and needed to be "upfront" about the financial predicament they were in.
"None of us feel very comfortable about this and none of the options are good."
Elected representatives also requested that officers prepare a consultation document.
Rates will be set at a council meeting on June 23, when the 2026-27 annual plan will also be adopted.
The council had to balance "doing right by the community" and financial stewardship, and needed to highlight the "true costs" of keeping the council running, Mayor Mel Tavendale said.
There was also debate in the council chamber about whether a formal consultation was needed.
Officers recommended that there was not a community consultation on changes to the annual plan and that the council should engage via the media, its website, a social media campaign and other methods.
In a report, officers admitted that some members of the community would be "disappointed" if not formally consulted but stressed there was "limited time" for engagement.
Earlier in the day, councillors rubber-stamped rejoining Southern Waters, a joint district council venture aiming to address the legacy issues of long-standing underinvestment in water networks.
At a glance
How the vote went.—
Agrees to a proposed rates increase of 19% as a basis for community consultation
For: Crs Courtney Linwood, Frans Schlack, Jeremy Holding, Dan Lewis, Rebecca Ryan and Mayor Mel Tavendale.
Against: Crs Mata’aga Hana Melania Fanene-Taiti, Jim Hopkins, John McCone and Sven Thelning.
Absent: Cr Brent Cowles.
