Council envisages lower rate rises

Mayor Bryan Cadogan says the budgets show ''winners and losers''. Photo by ODT.
Mayor Bryan Cadogan says the budgets show ''winners and losers''. Photo by ODT.
The Clutha District Council is preparing to bring to ratepayers a draft 10-year plan that would mean a reduction in rates hikes from previous years.

The council's draft 2015-25 long-term plan would include a 2.54% rates rise across the district, down from a projected 3.84% from the previous plan. Mayor Bryan Cadogan said while addressing rates affordability across the district was good, ''the budget shows the winners and the losers''.

''I'm pleased that we've managed to bring the anticipated average rate down from where we've forecast,'' he said.

''I think it disguises what's happening in individual rating communities.''

The council is expected to bring its draft long-term plan and consultation document to residents in April after the document has been audited.

In the consultation document, a push towards user-pays for some council services - pool and landfill use - and a move away from a user-pays approach to the water rate for urban areas would highlight which communities paid more and which paid less, the mayor said.

Council chief executive Steve Hill said increases in fees and charges in waste and building services, changes proposed in the levels of service for sealed roads, a change in timing for the Balclutha main street upgrade, and changes to spending on sewerage schemes and rural water schemes all played a part in the lower district-wide rates hike.

''These are relatively low rates rises and there are some reasons for that.''

Mr Hill said less would be spent on big-ticket items and councillors had agreed to set a rates cap of 4% for each year of the long-term plan.

A swim at the Balclutha and Milton pools would cost $1 more from July 1 but the council would consult on whether to continue funding Kaitangata Swimming Pool.

''Low use of the pool has made it hard for council to justify continuing to fund it,'' he said.

''Three options are being looked at: should it be completely funded through Kaitangata's rates, should it close, or should it become community operated?''

Landfill user charges at Mt Cooee would increase by 25% in the draft plan, he said.

''The latest information shows that wheelie bin collection accounts for only 30% of the waste going into Mt Cooee - 70% of it comes through the gate,'' he said.

Building consent fees would increase by 20% on average.

The move away from user-pays for water services would be phased in over three years, Mr Hill said.

Each of the district's 11 communities would eventually pay equal water, sewerage and stormwater rates.

''Balclutha and Stirling households would pay more under the proposed one water scheme than the current system,'' he said.

''Clinton, Kaitangata, Kaka Point, Lawrence, Milton, Owaka, Tapanui and Waihola would pay less.''

Mr Hill said the council would review Balclutha's i-Site, which could be moved to a new site on Elizabeth St or remain where it is with relocated services such as a service centre, museum or other community facility.

''The consultation document signals council's intention to spend on these projects, or spend time investigating them, and people will be able to tell us whether they agree with that or not,'' he said.

hamish.maclean@odt.co.nz

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