Topic 1: What services do we need for our community?

After months of workshops, Council meetings and exploring various options, Councillors have endorsed a draft Long Term Plan budget that proposes an average rates increase of 17.4%. To put this into perspective, Council’s interest, depreciation, insurance and utilities alone account for 14% of the proposed rates increase and even with this proposed increase, Council still needs to reduce some of our current services, which are detailed in the options below. Maintaining status quo, would see a 23.6% rates increase, an increase Elected Members could not endorse.

The weight of proposing a significant rates increase was difficult for Elected Members.

We understand the challenges many households are facing, especially with our district experiencing a disproportionately lower than average household income compared to the rest of New Zealand, coupled with the ever-rising costs of living affecting everyone.

The fact is Council is facing significant cost increases, including impacts on the cost of managing, developing and replacing our assets. We're also working to minimise Council's debt and fully rate fund operational costs and depreciation. These cost increases and strategic financial management changes mean Council needs to increase fees and charges and rates significantly to continue providing the levels of service our communities are used to.

In the past, Council has borrowed money to make rates increases more manageable, but this has led to a considerable amount of debt, limiting our ability to renew and invest in our capital assets. This approach is unsustainable in the long term. With the change of approach, by 2027 we would’ve achieved a fully balanced budget, allowing us to begin reducing debt. Council will then look to cap future rates increases at 10% per annum.