Council Boss Commits To Rates Rise Under 5%

Tuesday, 7 January 2025, 8:56 pm
Article: David Hill - Local Democracy Reporter

A North Canterbury council boss says he remains committed to keeping this year’s rates rise one of the lowest in New Zealand.

Waimakariri District Council chief executive Jeff Millward says he is confident he will present a draft annual plan to councillors later this month that keeps the annual rise under five percent.

The council committed to returning its average annual rates rises to under 5% in last year’s 2024/34 Long Term Plan.

Last year Prime Minister Christopher Luxon told councils to ‘‘rein in the fantasies’’ and focus on core business.

But Mr Millward warned the council is facing some challenges as it looks to stay within its budget, including rising insurance costs and inflation.

The council also has find $400,000 to pay levies to the Government’s water regulator Taumata Arowai, the Commerce Commission and waste levies, he said.

Funding depreciation on council assets and paying off the earthquake recovery loan, following the 2010 and 2011 quakes, continued to be major expenses.

Waka Kotahi NZ Transport Agency’s funding allocation from the 2024/27 National Land Transport Plan also left the council with a $13.5 million shortfall in its roading budget.

Changing Government legislation and the unknown costs of establishing a new Three Waters model were also creating some uncertainty, Mr Millward said.

‘‘We are looking at efficiencies and savings, including reviewing our vehicle purchases policy.’’

Speaking to Local Democracy Reporting last month, Mr Millward said staff had pruned the average rates rise down to 5.3%.

He was confident he could get it under 5% before the council’s deliberations, which begin on Tuesday, January 28.

Last year’s average rates rise of 9.39% was one of the lowest in Canterbury, but Mayor Dan Gordon said he was committed to delivering the 4.8% rates rise signalled on the LTP.

The council has consistently had rates rises among the lowest in the country, with pre-Covid average rates rises regularly below 5% despite the council paying off its earthquake loan.

‘‘We have done this without compromising our position as a high-growth council that’s attractive to move to, and our residents are happy with the services the council offers,’’ Mr Gordon said.

Next year’s annual plan will prioritise local infrastructure and core services, and introduce ‘‘revenue capping to non-core activities’’, he said.

Council revenue sat at around $150m a year, while the council’s debt is around $200m and community-owned assets, including roads, reserves and water plants, are valued at around $200 billion.

Consultation on the draft annual plan is scheduled in March, followed by hearings.

LDR is local body journalism co-funded by RNZ and NZ On Air.

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