Work starting on hard sums

The design concept for the planned Forrester Gallery extension of the former Bank of New South...
The design concept for the planned Forrester Gallery extension of the former Bank of New South Wales chambers. Parallel to that, the Waitaki District Council’s transformation restructuring process melding the old and the new is taking longer than expected and Waitaki district councillors have much to decide as they shape their budgets for the long-term plan. PHOTO: SUPPLIED
A 10.3% rates rise, anyone?

A "few messy processes" hang over the Waitaki District Council.

It enters 2025 on the cusp of change, but things should smooth out, according to fourth-term mayor Gary Kircher.

He has still not confirmed seeking a fifth term after telling the Oamaru Mail last October he would make a decision in another six months.

"I’m sticking with my April date for making up my mind," Mr Kircher said last week.

Meanwhile, the council has a budget to finalise.

The proposed 2025-34 long-term plan anticipates a 10.3% rates increase in 2025-26. Consultation opened on Tuesday and closes March 3.

The council’s major restructure, begun last July and dubbed "transformation", as a way to keep rates costs lower, has yet to get over the line.

Mr Kircher said an update on what transformation has cost so far is expected to councillors soon.

"It’s something we have asked for . . . the process of transformation has taken longer than expected," he said.

"Some things need to have more time. We want it to be right."

At the same time the expectation was "savings in staff costs" in being "more efficient and reducing on some areas".

"But again, it’s a bit like [Three Waters]. Some of those things won’t be as noticeable as we’ve got other costs rising at the same time."

Finalisation of the 2025-34 Waitaki District Long-Term Plan would take council until at least June.

Mr Kircher said elected members had yet to see quantified budgets for the restructured council departments within the LTP — despite the timeline for public submissions from March.

"The process will be finalised in March-April which will re-set the budgets for each department . . .

"It’s not ideal . . . we’re looking very strongly how we trim back costs."

With restructured council department budgets yet to come, the council will be consulting on a 10.3% rates increase in 2025-26 in the first year of the proposed LTP.

Mr Kircher said public feedback would be crucial and the projected rates increase should be lower than 10.3%.

"It needs to be lower — we do not want that."

The council has also pressed go on the next stage of its draft Waitaki district plan. Public submissions are due to be called soon and this will kick off a further lengthy hearing process.

And Waitaki is also tasked with delivering a clear plan to the government by deadline of September, outlining how it intends to undertake water service delivery into the future.

Mr Kircher said there were loose ends to tie up in 2025.

"We’ve had a few messy processes, unfortunately. I think it will resolve — so much change has happened," he said.

"What gets overlooked is the many good things that have happened — the things that go smoothly, the major projects that come in on time on budget."

Public expectation did not always recognise the complexity of the business local authorities were in.

Mr Kircher said it it was likely to be a factor in the 2025 local elections.

"I do see that as a symptom of an organisation that runs 30 to 40 activities as opposed to a ‘business’. Councils are very complex.

"One of the things that is probably going to show up in the election, and generally, is the gap between central government and its expectation, and local communities and their expectations."

Talk from Wellington to local government about sticking to "core business" as opposed to "nice to haves" was driving this.

"There is a lot of things that people will agree on in getting back to basics [but] as soon as there is any threat to services outside of those, people will get very much up in arms," Mr Kircher said.

The council was caught in the middle of a debate in which people would say "we want you to do" and what was now being communicated by the current government.

A clear example?

"They’re looking to take away the four wellbeings which is part of the legislation for local government."

Mr Kircher said despite the signals, wellbeing for communities would remain at the heart of council business because "core infrastructure" was very much about public good.

Other council activities such as libraries and cultural activities had the same focus with somewhat less tangible costed outcomes.

"The cost of a lot of those other things is relatively minor.

"That’s not to say we shouldn’t be careful how we spend our money [but] the government is taking an accounting approach . . . it’s certainly going to be interesting over the year."