Clutha District Council’s draft annual plan included a proposed average rates increase of 20.58%.
Following decision-making meetings this week, the council announced a provisional final figure of 20.54%.
Councillors were in cost-cutting mode during the second of two meetings this week, on Thursday.
Concerns about rising council debt and uncertainty regarding future infrastructure commitments led the council re-evaluate community grant applications.
Several applicants will receive only a portion of their requests, and some were declined altogether.
One notable applicant under the council microscope was the Te Pou Ō Mata-Au Charitable Trust, which operates the $25 million Te Pou Ō Mata Au, Clutha District War Memorial & Community Centre, in Balclutha.
The trust was seeking $80,000 towards operational costs once more this year, believed to be earmarked for insurance.
However, Cr Bruce Graham pointed out the trust had sought a similar amount last year, while indicating at the time it did not expect to do so again.
Cr Graham questioned whether the council could now expect to fund the trust in perpetuity.
“If you keep feeding sheep at the fence, they keep coming back.
"Do we expect everyone who has an increase in their premiums to come to us in future?” he said.
Clutha District Mayor Jock Martin said the facility was the envy of the district, and criticised Cr Graham’s comparison.
“We have a lot of sheep coming to the fence this year, and a lot of them are very worthy.
"I think [that description] may have been a bit harsh.”
Although councillors voted to issue the grant by six votes to four, it transpired the facility was not yet out of the woods.
During a final review of the plan, councillors were given the option to revisit earlier decisions in order to reduce the final rates figure.
After councillors voted to overturn an earlier decision to keep Milton Pool open — saving $115,000 in rates — Milton Cr Larry Frost countered by revisiting the Te Pou Ō Mata Au decision.
The earlier decision was once again overturned, but only in technical terms.
The community centre will now receive its $80,000 grant through investment capital, rather than rates.
Despite earnest debate during the majority of Thursday’s meeting, proceedings were leavened briefly by a request for funding made by Crookston Cemetery in West Otago, eliciting wry smiles from councillors.
Documentation indicated the cemetery’s managing trust sought a $1000 boost to its long-standing grant of $2000.
“The trust requests [the increase] . . . to meet the rising cost of living,” the application said.
Last month, Mr Martin said the rates increase would likely breach the council’s self-imposed limit of no more than 20% per year during the long-term plan’s first three years, he said.
The council previously signalled an 18.92% increase for 2026-27 in the long-term plan, reflecting a decision to distribute a 45% rate increase over three years, he said.
"This increase should not come as a complete surprise.”
‘‘We are addressing the facts of our situation; borrowing further to lessen the rates impact is not a viable option.’’
