Selwyn District Mayor Sam Broughton has made a major campaign promise: Committing to future rates rises of below 7%.
He made the claim on the Rolleston.community Facebook page.
But his opponents in the upcoming October local body elections are questioning if it is an actual reduction in spending - and, if spending could be reduced, why was it not done sooner?
If the rates cap is achieved, it would be a significant decrease when predictions in the Selwyn District Council’s Long-Term Plan are forecasting rates increases of 13.3% next year and 13% the year after.
For the last two years the district has been hit with large rates increases of 14.9% in 2024 and 14.2% this year.
Malvern Ward councillor Lydia Gliddon is the first sitting councillor to run against Broughton since 2016.
The pair were also joined by latecomer Brad Mannering, a local government outsider.
Broughton told the Selwyn Times: “I think double digits is unaffordable. I don’t like rates increases and I know the community doesn't either, but we have to be able to pay for the things that we want done.”
Broughton said he was looking to “smooth” the rise of rates.
“When I look back over the last 10 years on council we have managed an average 7% rates increase and it is the bumps that really hurt.
“We had a 1% increase during Covid and if that had been a 7% or 8% then this year would have been a 7% or 8%.”
To achieve the 7% cap, Broughton told the Selwyn Times work could be deferred or other efficiencies within the council’s budget could be found through under-utilised land and investment in technology instead of hiring new staff.
Broughton said he was not relying on water and wastewater coming off the rates bill next year when Selwyn Water Ltd takes over to get to the 7%.
“That is not part of it, I’m talking total costs to ratepayers,” Broughton said.
Gliddon said spreading the rise was not reducing costs.
“It’s just cash flow management, so there is no reduction. Within that, there is no willingness to cut expenditure.”
Gliddon said if elected, she would look for a reduction by going “line by line” through council budgets. She did not put a percentage amount to the reduction.
Broughton was not able to say what a 7% or less rates rise next year would mean for the future rises at the end of the LTP of about 3%.
"With a new council coming in, seven years away is too speculative to guess what those numbers might be.
"With a new council, it means looking at everything it is starting from the ground up."
Mannering said while it was difficult to test Broughton’s promise without all the data available to him, he was left asking – why now?
“If he was able to do that, then why are we having this conversation during election time?” Mannering said.
Said Broughton in response: "During Covid council responded to community concern and had a 1% rates increase.
"We had to catch that up and we also had inflation on road construction and water pipes at about 30% in three years. If the Covid year had not been so low, then this year could have been 7%.”
Mannering said if 7% was feasible he would look to match it.
