Mayor Dan Gordon said staff are battling to keep this year’s average rate rise under five percent, which was signalled in the 2024/34 Long Term Plan.
The council met on Tuesday to resume its deliberations on the 2026/27 annual plan ahead of the final adoption on June 16.
‘‘I have said to Jeff (council chief executive Jeff Millward), I want to keep it under 5%,’’ he said.
‘‘It’s the effect of a global system and we’re not immune to it.’’
The council consulted on an average rate rise of 4.91%, with an average general rate rise, excluding water services, of 2.7% across the district.
Under the Government’s Local Water Done Well reform, water services will be funded by a separate water levy in future.
Revenue for the nine months to March 31 was $132.8m compared with the budgeted $142.5m.
It left a debt to revenue ratio of 128%, well below the 350% limit for growth councils set by the Local Government Funding Agency.
The lower revenue was due development contributions being $6.8m less than expected, as property development slows due to the economic downturn.
Operating expenditure for the nine months to March 31 was $121.2m, compared to a budget of $124.7m
During consultation, the council sought feedback on the Government’s reforms, the implementation of an in-house water services business unit, the council’s capital works programme and the business case for the proposed Rangiora eastern link road.
The reforms include the Resource Management Act reforms, the proposal to abolish the Canterbury Regional Council, the emergency management bill, rates capping and development levies.
The consultation closed before the Government’s latest announcement earlier this month, giving councils three months to come up with proposals to reorganise local government in their regions, or the Government could step in.
The council received 59 submissions, with support for local decision-making, Mr Gordon said.
There were concerns about affordability and pressures on ratepayers, and funding models which shifted costs on to ratepayers.
Submitters also said the proposed Rangiora eastern link road was ‘‘essential and overdue’’.
Last week Waka Kotahi NZ Transport Agency gave its support to the council’s business case and approved funding of $4.5m towards the cost of detailed design and property acquisition.
The overall project is expected to cost $65.6m, with the council’s contribution of $17m set to be loan funded, with ratepayers paying around 70 cents a week per property over a 20 year period.
Under the proposal, the balance would be funded by NZTA and development contributions.
By David Hill, Local Democracy Reporter
■ LDR is local body journalism co-funded by RNZ and NZ On Air.
