Waimakariri Mayor Commits To Keeping Rates Rise Below 5%

Monday, 14 October 2024, 8:32 pm
Article: David Hill - Local Democracy Reporter

Returning to a rates rise of under five percent remains a priority after a challenging few years, Waimakariri Mayor Dan Gordon says.

The Waimakariri District Council has begun work on next year's annual plan after signalling a 4.8 percent rates rise next year, when it adopted its 2024/34 Long Term Plan (LTP) in June.

Gordon said councillors reaffirmed their commitment at a recent workshop.

''I am committed to seeing us deliver what we said we would through the LTP and this workshop is an opportunity to discuss and further investigate ways we can get better value for money and deliver the services the community wants.''

The council has consistently had rates rises among the lowest in the country, with pre-Covid rates rises consistently below 5 percent despite the council paying off its earthquake loan, following the 2010 and 2011 quakes.

This year's rise of 9.39 percent was one of the highest Waimakariri ratepayers have endured, but was still well below the national average.

''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,'' 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 chief executive Jeff Millward said the community was continuing to face economic challenges.

''As expected there are no significant changes since last year and staff have been instructed to review their programmes to see if we can get better value for money so services can be kept consistent.

''The community is still facing cost-of-living pressure, the consumer price index has been running high for the past year and mortgage rates, while dropping, remain high.''

Millward said the council was facing the same cost pressures as households.

Electricity and insurance costs have skyrocketed, while Waka Kotahi NZ Transport Agency's funding allocation had left the council with a $13.5 million shortfall in its roading budget.

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

Millward said a large chunk of the $200m debt was due to the council's earthquake loan.

It means the council has a debt to income ratio of 1.3:1, compared to household mortgage borrowing in New Zealand which is capped at a 6:1.

The council is planning more budget workshops before its draft annual plan deliberations in late January and consultation in March.

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

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