The Clutha District Council has decided to keep roading rates at its budgeted level, despite an indication the Government will not increase its contribution to the council's roading programme.
At its meeting yesterday, the council's district assets manager, Jules Witt, said the New Zealand Transport Agency had indicated the council would probably be granted only $36.4 million for the three-year period instead of the $38.5 million requested.
"Basically, they have frozen our funding. We are expecting some impact on our level of service," Mr Witt said.
If only $36.4 million is granted by the agency for the three-year period, it will result in an annual reduction of $685,000 in the Clutha District Council's budget, with $310,000 of that the council's share.
Cr Geoff Blackmore moved that the council reduce the budget for the 2012-15 period by its annual share of $310,000, which would help lower rates.
He said the council should pass the $310,000 saving on to ratepayers, despite the possibility of roads deteriorating, by not spending the money on non-financially assisted roading.
The motion was lost seven votes to five. Two councillors were absent.
Most of the submissions made by Clutha ratepayers to the draft long-term plan about roading requested more sealed roads and improved maintenance of roads, both sealed and gravel. A decline in roading funding would mean the council would be less likely to be able to grant these requests for road upgrades.
Councillors voted to retain the budget for 2012-15 and use the $310,000 per year to increase the deferred roading maintenance fund, which would be spent on non-financially assisted roading activities such as traction seal and Eco Star dust suppression.
"Money spent on traction seal is money well spent," Cr John Cochrane said.
Traction seal is undertaken on isolated sections of unsealed road for safety reasons. These are often in steep or windy areas and can develop corrugations. Over the past few years several roads, such as Mt Stuart Rd near the wind farm and Purakaunui Falls Rd in the Catlins, have had traction seal added.
The Clutha district has the third-largest roading network in New Zealand.
The council will meet on June 14 to adopt the long-term plan and strike rates for the 2012-13 year.
