Ashburton’s Rates Set To Climb 7.3%

Thursday, 27 March 2025, 9:06 pm
Article: Jonathan Leask - Local Democracy Reporter

Ashburton councillors will decide next week whether to ask the community about the draft annual plan, which signals an average rate rise of 7.3%.

The plan had forecast a 10.1% increase, but a final workshop on Friday saw councillors direct staff on a 7.3% increase.

Estimates show this would equate to an average $135 rate increase for a $870,000 Ashburton home and a $759 increase for a $9.3m farm.

Now the councillors will determine if the plan differs significantly enough from the long-term plan, signed off last year, to require consultation at next week’s meeting, with a view to adopting the plan before June.

Mayor Neil Brown said it was “a solid outcome” to see a figure lower than first forecast.

“We have trimmed a few things out and had a few things go in to get to 7.3%."

“We know there are lots of financial challenges at the moment for everyone and council is not immune to inflation and insurance increases either.

“We are still delivering the same services.”

The council expects to collect about $57.6m in rates to run the district in 2025/26.

It also plans to call on $4m from cash reserves and borrow for some big projects, including $16m for three waters projects.

Brown said the focus is on delivering core work.

“We’ve increased the fixed drinking water charge for households on an urban scheme by 5% to $741.50.

“That is really gearing up for the new Local Water Done Well work programme that will come online in the next couple of years.

“It’s vital that council’s community drinking water schemes are compliant with the new standards and that we can also prepare for the new wastewater standards that are coming.”

The plan also includes almost $21m on roads and footpaths, including the extra $3m unsubsidised funding the council kept in after the reduced subsidies from NZ Transport Agency.

Brown said Canterbury's councils continue to lobby the Government to improve the subsidies because the South Island has been underfunded in recent years.

He said that any additional funding for the council’s new connecting road to the second Hakatere/Ashburton River bridge, with NZTA funding the bridge, was not part of this Annual Plan.

“The actual cost of constructing this road will be clearer later this year when a contract for the project is let, but we know our part will be more than the $7.5m we’ve had tagged since 2018.”

The rate increase will affect properties differently depending on their capital value, and any change in the recent three-year revaluation, where they are located, and the council services received.

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

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