The Southland District Council’s 2020-21 draft annual plan includes a 2.65% rate increase to help lighten the impact of Covid-19.
The figure is less than the 3.27% forecast in the long-term plan and less than the potential 7.59% increase mooted by Cr John Douglas during a council meeting in January.
A report, prepared by council’s planning and reporting analyst Shannon Oliver, said the reduction was down to using roading and forestry reserves to offset increased costs in 2020-21.
About $1.7 million would be used for the roading reserve to reduce the roading rate and $400,000 transferred from the forestry reserve.
"This is a one-off approach."
It also stated the majority of changes were related to capital works projects for roading, sewerage and water renewals.
They included the addition/deferral of $4.1 million of water capital projects in Lumsden/Balfour, Manapouri, Riverton and Te Anau, $12.5 million of wastewater capital projects in Ohai, Riversdale, Riverton, Stewart Island and Te Anau and $900,000 from refurbishment of the Don St office.
Council’s 2020-21 contribution to the Pyramid Bridge replacement ($300,000), $1 million emergency roading works as a result of the February 2020 floods and $1.5 million of bridge renewals completed the list of capital works.
Additionally, there were a number of changes to operational costs from what was forecast, including increased costs with employee related ($1.9 million), water maintenance ($300,000), rubbish and recycling ($300,000).
The report will be presented at today’s meeting via social media.
