31-07-2025
- Business
- Otago Daily Times
Major rates increase forecast for district
It was a case of more bad news for Waitaki ratepayers this week, with suggestions big rates rises could be coming sooner and more often than first thought, as the district tries to fund a financially sustainable in-house water services unit.
There was also bad news for those who might be elected to Waitaki District Council in the October elections.
As part of the government's Local Water Done Well reforms, councils throughout New Zealand must submit a Water Services Delivery Plan (WSDP) to the Department of Internal Affairs by September 3.
The Waitaki District Council last month voted that would be done through an in-house business unit, rejecting three other options including a joint council-controlled organisation (CCO) with the Central Otago, Clutha and Gore district councils.
On Tuesday, it held a second weekly workshop to refine a draft plan to be put to Internal Affairs for initial feedback this week.
Following the first workshop, councillors heard a rates rise of 25.61% in the 2028 LTP year would be needed to fund the in-house plan (it might also rise to about 30% if depreciation of water assets was included in the WSDP).
This week, the council's chief financial officer Amanda Nicholls told the meeting if depreciation was included the 2028 rates rise would need to be 42.55%, with another "significant" increase needed in 2035.
However, Mayor Gary Kircher suggested including the depreciation earlier than 2028.
Doing so would ease the needed rates rise but bring it forward, Ms Nicholls said.
Mr Kircher said he did not think there was a choice.
It would mean a 25% rates increase for next year, followed by a 30% hike the following year.
He recognised that also meant leaving it to the new council (following the local body elections in October) to redo the long-term plan and try to reduce the rates rise by cutting capital projects.
"There's a lot of stuff that council has to do between now and agreeing on that annual plan to cut costs elsewhere," Mr Kircher said.
The existing long-term plan was put together under the understanding that the council would adopt a joint CCO water services model, as it had previously said that was its preferred choice of model.
