At a meeting of the council's assets committee yesterday, it was recommended the full council approve $463,000 in additional annual expenditure to meet new road maintenance contract requirements for the 2017-18 financial year and part of the 2018-28 long-term plan period, until 2020.
The increased expenditure levels came about as a result of components of the council's roading resilience programme being included in its new contract with SouthRoads.
Increased demand on the district's roading network meant more maintenance work was required, which was reflected in the three-year, $12.638million contract awarded to SouthRoads in February.
Cost increases cover sealed pavement maintenance ($260,000), unsealed pavement maintenance ($110,000), drainage maintenance renewal ($80,000), litter collection ($25,000) and unsubsidised activities ($80,000), a total of $545,000.
However, $12,000 of the litter collection costs and $70,000 in unsubsidised activities could be incorporated into existing budgets, which meant the actual cost increase from July 1, 2017, would be $463,000.
It was expected an NZ Transport Agency subsidy would fund $265,000 of that, and $35,000 of drainage renewal costs would be funded through depreciation reserves.
That left a shortfall of $170,000, that would have to be funded through council rates if service levels were to be maintained.
Council officers said that would mean a rates increase of 0.5 on top of the proposed 1% increase for the 2017-18 financial year.
Waitaki Mayor Gary Kircher said there were few other funding options available to the council.
''It has to come from rates essentially ... I don't think there's any other logical sources of funding at this stage that could be identified.''
Cr Melanie Tavendale disagreed, and said there were a ''number of funding avenues'' the council could consider, such as funding the $170,000 from the dividend paid to the council by Whitestone Contracting Ltd, a council-controlled company, which totalled $700,000 in 2016.
The recommendation will be voted on by the full council on May 10.
-By Daniel Birchfield
