District council proposes rates increase
Southland District Council rates could increase by 3.64 per cent, as part of its 2017-18 annual plan. The increase will help cover increased maintenance contract costs, offset a drop in funds coming to the council from the NZ Transport Agency and provide increased funding for asset depreciation.
The rates increase is slightly higher than the 3.36 per cent proposed in the council’s 10-year plan.
One of the largest projects earmarked for funds in the plan is the Catlins road seal extension, which the council is expected to funnel $4.15 million into.
The NZ Transport Agency will also contribute to the project costs.
Tenders have been called for sealing the last section of the Southern Scenic Route on the Catlins road, with construction work expected to begin this year and continue through into 2018, slightly later than the council had planned.
This has resulted in the total construction budget being moved from 2016-17 into the 2017-18 budget.
The plan also says that while an expected $5.6m spend on the Te Anau wastewater project has been deferred, $500,000 has been allocated to the investigation of an alternative disposal site.
In December last year, the council came to an agreement with Fiordland Sewage Options, which had appealed to the Environment Court against the council’s consented Kepler option, to investigate an alternative option, leading to Fiordland Sewage Options dropping its appeal.
The consented Kepler option remains the council’s preferred option.
The council is in negotiations with the owner of the alternative site, known as the Smith block, the consultation document says.
‘‘... and [the council] will consult with neighbouring landowners. Once that’s happened, we’ll do some preliminary investigative work on whether the Smith block is suitable for treated wastewater disposal.’’ it says.
The council also expected its debt to drop to $2m, from $5.3m, because of the deferral of the Te Anau wastewater project, offset by the cost of other projects including the Catlins road sealing.
For similar reasons, the council also expects its capital expenditure to drop by $1.3m.
Two grants have also been outlined in the plan, with a one-off $10,000 being given to the loss and grief centre and a one-year grant of $20,000 to Swim Safe Southland.
The council’s draft annual plan is in the public consultation phase. Consultation ends on March 10.
Deputy mayor Paul Duffy said the council always liked to keep rate increases ‘‘as low as we possibly can’’.
‘‘But you could have no rate increase at all, if we didn’t do anything,’’ he said. ‘‘It’s about looking at activities that give as much value for money as possible.’’
This year the annual plan had many proposals that were looking to the future and providing for the needs of Southland. The proposed sealing of the Catlins road would be a success for the council, he said.
Duffy said he had been involved with the project, which had been going on for about five years.
In many places road sealing was not happening, because of lack of funding. It was great the council had a helping hand from the Transport Agency to seal the road, he said.