Proposed rates increase reduced to 14% following LTP decisions

Key decisions for the Clutha District to reduce the average rates increase to about 14% including reducing the scope of work for the Milton Main Street and Balclutha Streetscape upgrades along with trimming the capital works programme were made at the Clutha District Council Long Term Plan decisions hearing meetings held on Wednesday, Thursday, and Friday (June 12,13 and 14).

Following a month-long consultation process that resulted in over 665 submissions and three days of verbal hearings, Council has made a wide range of decisions about the 10-year plan.

Clutha District Council Mayor Bryan Cadogan said councillors have spent the past three days around the council table going line-by-line and considered over 300 lines for exclusion, deliberating decisions for its Long Term Plan 2024-34.

Mayor Cadogan said “following a comprehensive review of the capital works programme we’ve managed to make cost savings of $65.4 million albeit under sometimes intense discussions. This has brought our initial 20% proposed average rates increase for 2024-34, down to 14% while still showing commitment to the overwhelming majority of requests that came through the community submission process.

“I want to thank the people who put their trust in the formal process and assisted council to undertake the appropriate steps required to do the best by the ratepayer in incredibly difficult circumstances.

“The eventual outcome while still containing challenges, reflects the commitment to our district’s vibrant future. I want to thank staff and councillors for prevailing despite unprecedented and unfounded personal attacks.”

He said it had been a challenging time with 3 waters legislative requirements being a big driver for the proposed rates increase.

“The last few days have bought to light the significant cost increase to the Greenfield Water Scheme project which highlights the need to continue to lobby Central Government.

“Many of the outcomes are controlled by Wellington and our ability to genuinely make changes especially to 3 waters projects has been challenged due to our inability to negotiate under the present structures that prevail.”

He said Council’s focus would now be on investigating sensible solutions and promoting more sustainable outcomes in the long term for three waters in the Clutha District.

Along with a reduction in the rates increase the overall rates cap for borrowing was also reduced from 25% to 20% in the first three years and 10% from 2027 until 2034.

Mayor Cadogan said Council was also able to retain just over $1 million of the $2.4 million in investments that were returned this year, to buffer against future years increases.

Council staff will now update the proposed 2024-34 Long Term Plan ready for independent audit and sign off before it is adopted at a Council Meeting on July 26.

A full list of the decisions made at the yesterday’s meeting will be available on Council’s website next week.