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Ashburton’s Budget Awaits Water Reform Figures
Ashburton ratepayers look set to still have an average rates rise under 10%, but a "few balls" remain in the air before a figure will be confirmed.
Two budgets - the roading and drinking water and wastewater budgets - are being examined with a fine-toothed comb on the 2025/26 annual plan.
Councillors will have one last look at the annual plan budgets on March 21.
Council democracy and engagement group manager Toni Durham said factoring in the future cost of water services is one of the final steps to finalising the 2025/26 annual plan.
“We are making sure we are being realistic with the increases needed given what is coming under the Government's Local Water Done Well reform.
Under the reform, councils have to demonstrate financially sustainable water services from July 1, 2028.
Following another budget workshop last Thursday[March 6), staff have been asked to look at modelling for how renewals and depreciation are being funded, Durham said.
With the question marks around water services and “the ripple effect” that can have on the budgets, there wasn't a solid average rates rise figure yet, Durham said.
“There are still a few balls in the air before we can settle on figures.”
The second round of budget workshops required an extra session last week to focus on the roading budget.
Durham said this was the result of the timing issues of the council setting its long-term plan budgets before NZTA announced its funding, which didn’t match what the council had budgeted for.
“You can’t just roll the numbers over, so we have made sure we made the right adjustments.”
The budgets will be finalised at a workshop on March 21.
Consultation is unlikely to be required as the weren't deemed significantly different from the long-term plan.
That decision will be made by the councillors at the April 2 council meeting.
The annual plan needs to be adopted by June, and without a consultation process, it could be adopted earlier.
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