Clutha district ratepayers are looking at an average rate increase of more than 5%.
At a Clutha District Council meeting yesterday, the council approved a draft of its annual plan for the 2023-24 year, which had an average rates increase of 5.14%.
That compared to the initially proposed 3.99% for the 2023-24 year back in 2021.
It will also surpass its self-imposed 4% rates cap in the 2021-31 financial strategy.
In a council report, the increase was blamed on economic pressures and significant changes since the development of the initial financial strategy.
It was also consequential of previous decisions made to smooth rating impacts.
Clutha Mayor Bryan Cadogan said the rates increase was a "reality shift", but the council was determined to keep cost increases to a minimum.
Mr Cadogan had previously mentioned in community board meetings the need to give "an early indication of an increase" and the "need to find a balance so ratepayers could prepare themselves for the changes".
"It’s imperative we enter the new year with realistic expectations.
"We will still be delivering the core services and projects that ratepayers expect, but this year we will be doing the process differently."
The council will now move to soapbox sessions around the district to consult with the public to voice concerns, opinions and solutions for the ensuing year and the annual plan.
Consultations and verbal submissions will be brought to the council and a meeting to decide changes to the final plan for the 2023-34 year will take place on May 18.
The final annual plan will be adopted on June 15 and will take effect on July 1.
Under laws introduced in 2014, council do not have to consult on annual plans unless there was material change.
It was felt the change in rates and other changes meant the council had to consult the community about the annual plan.
Written by Evelyn Thorn