Rate rises less than expected

Southland councils have approved average rates increases which are less than initially projected.

Invercargill City Council led the charge last week when it ushered in an average rise of 7.03% — higher than its March position but less than the 8.43% forecast in its long-term plan.

Mayor Tom Campbell acknowledged the increase was still "a lot" for people who were struggling but said an "enormous amount of work" had gone into keeping it at that level.

He also pointed out the figure was less than a 10.4% average increase for councils south of Christchurch.

Council group manager Patricia Christie said Invercargill’s final figure was slightly above the March amount because of decisions the council had made relating to fees and charges, including for Splash Palace, buses and parking.

Southland district councillors approved an average increase of 9.77% last Wednesday which was less than the 11.02% forecast in the council’s long-term plan.

A report prepared for the meeting acknowledged cost pressures affecting ratepayers across the district.

Environment Southland managed the smallest rates jump in the region with an average increase of 3.25%, markedly less than its forecast 12.6%.

The regional council said it achieved the reduced amount through "careful prioritisation of work programmes, timing decisions, efficiency improvements and the use of reserves".

The changes will come into effect from July 1, when the new financial year begins.

• LDR is local body journalism co-funded by RNZ and NZ On Air.