At an intensely-argued annual plan deliberation meeting in Queenstown yesterday, councillors also responded to concerns raised by Luggate and Hāwea residents about rates spikes caused by wastewater upgrades in the two communities.
Councillors agreed to cut the average rates rise in Luggate from 28.3% to about 14%, and pared back Hāwea’s rates increase from 18.2% to about 12% — in the latter case by reducing the principal repayment on the loan for Hāwea’s wastewater upgrade, and reducing depreciation funding.
Those numbers could go even lower when councillors approve the annual plan on June 25.
That is because a majority of councillors agreed to get the district-wide rates rise to below 10% — almost half the original projected rise of 19%.
That will be achieved by reducing depreciation funding for council assets, and cutting capital expenditure on 10 projects, either by deferrals or budget reductions.
It will bring the rates rise closer to Mayor John Glover’s aspirations after his election last October, when he told Allied Media he wanted to keep it to no more than 5%.
Councillor Niki Gladding said the council was not responsible for rising fuel and food prices, but keeping a lid on rates was something it could do to help residents who were struggling financially.
‘‘Every little bit matters, and I think we have to be mindful of the people at the bottom.’’
Cr Jon Mitchell said he supported reducing depreciation funding to achieve a single-figure rates rise because it demonstrated the council was ‘‘listening to our communities’’ while still maintaining council services and meeting the statutory requirement to increase depreciation over time.
Mr Glover said the process by which the council calculated rates would be reviewed as part of work on the next long-term plan.
The council had to do a better job of explaining to ratepayers how their rates were set.
‘‘The biggest message to me is that we have to be able to show . . . we are balancing [interests], that we are transparent, and can explain why we’re charging what we’re charging.’’
Luggate Community Residents Association member Dan Brake told Allied Media last month another big rates increase, on top of the rising costs of food and fuel, could push him and his family out of the district.
Mr Brake said yesterday that trimming the township’s rates rise to 14% was ‘‘awesome’’, and would ease the financial strain many of its residents were feeling.
‘‘They’ve actually listened to people and realised people can’t afford it.
‘‘Fourteen percent is still a big increase, but it’s not as big as 29%, and that will make it more affordable for some people.’’
The district’s ratepayers have faced a cumulative rates increase of 50% in the past three rating years.
Although rates revenue has been growing from more residents and houses, council costs from inflation, servicing debt and infrastructure spending — especially on Three Waters — have been growing faster in recent years.
