Big rates rise looms for region
Marlborough’s biggest rates increase in a decade is looming as the council outlines its 10-year spending plan.
The Marlborough District Council proposed annual increases of between 2.08 per cent and 5.38 per cent in the 2018-28 draft long-term plan, starting off with an increase of 4.90 per cent in 2018-19.
The proposed 5.38 per cent increase in 2020-21 would be the biggest increase since a 6.59 per cent increase in 2008-09. Next year’s rise follows on from a 2.48 per cent rise last year.
Marlborough Mayor John Leggett emphasised the proposed increases were still at the draft stage.
‘‘These are not final figures as we’re at the start of a process, a consultation document will be available and ratepayers will have the chance to tell us what they think before we firm up the budgets,’’ Leggett said.
Council corporate finance manager Martin Fletcher also commented that the proposed increase could change.
‘‘The 5.38 per cent is an indicative figure only and will be subject to two annual plan reviews before the 2020-21 rates are set,’’ he said.
Capital expenditure had risen from $28.3 million in 2013-14 to $42.7m last financial year.
It was projected to be $50m for the 2017-18 financial year. The council capped capital expenditure at $60m for the first three years of the long-term plan.
Water and sewerage took up 40 per cent of forecast capital expenditure over the next 10 years.
‘‘We’re concentrating on the core services and we’re using our reserve funds wherever possible so there’s little scope for the nonessentials but we’re trying to ensure every dollar we’re spending will deliver a service or create a benefit for ratepayers,’’ he said.
Leggett said the council had its priorities right by making water a ‘‘key priority’’.
‘‘We’ve been spending some large sums upgrading our water supplies and that decision has been vindicated by what we’ve seen happen in Havelock North,’’ he said.
Increasing costs of material such as bitumen and pipes were also part of the rise in capital expenditure.
Earthquake repairs had ‘‘little impact’’ on the proposed rates, according to the plan.
The report said this was because earthquake-related work was an ‘‘acceleration of already budgeted work’’ and the council having enough money in its emergency events reserve.
But Leggett hoped central Government would contribute more funding for repairs.
‘‘The earthquake has left us no real choice about some matters, we know for example, we have a damaged stormwater and sewerage system that requires a longterm repair programme in the interest of maintaining our water quality,’’ he said.
More resources would also be allocated to environmental science.
‘‘We have had a clear message from the public that more emphasis is needed to protect biodiversity and with a new Marlborough Environment Plan on the way we need to be able to fulfil its aspirations for managing Marlborough’s natural and physical resources,’’ he said.
Councillors also favoured lifting the council’s self-imposed debt cap from $100m to $140m to take rising costs into account.
The council is due to adopt the 2018-28 long-term plan consultation document on April 5.
From that date the public can put in submissions and the deadline for submissions will be May 11.