Waimakariri Pushes To Keep Rates Rise Under 5%

Tuesday, 28 January 2025, 9:36 pm
Article: David Hill - Local Democracy Reporter

A North Canterbury council is sticking to its promise to return to average rate rises of under five percent.

The Waimakariri District Council opened its deliberations on the 2025/26 annual plan on Tuesday (January 28), with staff proposing an average rates rise of 4.98 percent.

Acting finance and business support general manager Greg Bell said meeting the rates pledge made in last year’s Long Term Plan had not been easy.

‘‘We are in year two of the Long Term Plan, which we only signed off seven months ago, so you would think it would be easy.

‘‘But things change and the Government does things as well.’’

Prime Minister Christopher Luxon has told councils to ‘‘rein in the fantasies’’ and focus on core business, in a bid to get rates down.

But Mayor Dan Gordon said 0.4% of the extra rates burden was added by Government, including water regulation costs of $360,000.

Responding to a question, chief executive Jeff Millward said it remained unclear what the Prime Minister meant by focusing on core business.

‘‘Core services is roading and pipes, but try taking the library off the community and see what happens.’’

This year the council will consult on the delivery of water services, roading, the proposed removal of the council’s early payment discount on rates, development contributions and the council’s cost pressures.

Mr Bell said staff are aware of only two other councils offering early payment discounts on rates.

Removing the discount would boost the council’s revenue by nearly $195,000, he said.

While inflation has dropped to 2.2%, Mr Millward said councils were impacted by construction costs rather than buying groceries, with local government inflation sitting at 3.1%.

Other cost pressures included changing legislation and changes to three waters, while repayments on the council’s earthquake recovery and MainPower Stadium loans added around 2% a year to rates, Mr Gordon said.

The council plans to spend $61.2m on capital projects, less than the $80m budgeted in the Long Term Plan, while council debt is predicted to increase from $200m to $232m.

The reduced capital budget is due in part to a reduced roading budget, after the council was left with a $13.5m shortfall after Waka Kotahi NZ Transport Agency funding was confirmed in October.

The deliberations were scheduled to continue on Wednesday, but Mr Gordon was optimistic of getting through the business in one day.

The council will meet again on February 18 to adopt the draft annual plan, which will go out for consultation in March.

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

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