Council opts for 2.31pc rate rise
The Southland District Council has approved a 2.31 per cent rate rise.
The rise is less than the council’s Long Term Plan forecast of 3.27 per cent, and less again than the 2.65 per cent proposed, which brought criticism from councillors earlier this year.
The rise came at a time when ratepayer advocacy groups were calling for rate freezes, as the financial effects of the Covid-19 pandemic were still yet to crystallise.
A Taxpayers Union petition for a freeze has 10,911 signatures.
The Invercargill City Council set a 2 per cent rate rise and a policy which allowed for the postponement of rates for people who experienced financial hardship as a result of the pandemic.
The Southland District Council did not create such a policy. Mayor Gary Tong said previously he wanted a caseby-case approach if ratepayers needed help to pay.
At a council meeting yesterday, the rate rise was put in stone as councillors adopted the Annual Plan.
The council will borrow $20 million, increase rates by 2.31 per cent and forecast to record a net deficit of $4.8m this coming financial year.
An external council committee chairperson previously described the deficit budget as prudent.
Cr Don Byars said yesterday the Annual Plan took council to about a quarter of its self-assigned debt limit, and if the trend continued, the council would hit its limit [total debt no higher than annual revenue] within the coming four years.
‘‘It’s a fairly significant jump in debt,’’ Byars said.
Tong said the council’s debt trend could be discussed when councillors consider the Long Term Plan.
Deputy mayor Ebel Kremer said Byars’ comments were important, but a key focus of the council was spending money on investing in infrastructure.
‘‘We felt it was a fair and reasonable
‘‘We felt it was a fair and reasonable rate increase.’’ Ebel Kremer
Deputy mayor
rate increase,’’ Kremer said.
A report tabled at the meeting by corporate performance lead Jason Domigan said an audit by the Ministry of Business, Innovation and Employment led to five new fees being included in the annual plan: A $165 swimming pool inspection fee, $111 annual renewal of building warrant of fitness fee, $350 inspection of building warrant of fitness fee, $400 amendment fee and a $342 discretionary exemption fee.
The fees would net the council about $150,000 to $200,000 of revenue a year, Domigan said.
In April, councillors Karyn Owen and Rob Scott, along with Byars, raised their concerns about the then proposed 2.65 per cent rise.
Those three councillors are serving their first terms.
Both Owen and Scott signalled their disapproval at staff not presenting a zero rates rise option for councillors to consider.