Rates could increase 33% over next 10 years

RESIDENTIAL ratepayers in Oamaru could face a 33% increase in their current rates over the next 10 years.

In the first year of the Waitaki District Council’s proposed 201828 longterm plan, the projected rise is 3.67%.

Under the proposed plan the rates would increase about an average of just over 3% for each of the next 10 years.

The council’s proposed 201828 longterm plan consultation document and accompanying documents published this week list economic development opportunities the council wants to pursue as well as noting the population is expected to remain relatively static, with some growth in the number of Pacific Islanders and other migrant groups.

About 63% of the district’s 22,200 residents live in Oamaru.

The consultation document seeks feedback on proposals including pursuing Unesco Global Geopark and Unesco World Heritage Status, a possible new cycle trail from Oamaru to Palmerston, building new facilities and ‘‘exploring opportunities in the offshore oil and gas field space’’.

A proposed $14 million indoor recreation centre would require planning work over the next two to three years and the cost of the facility, with 50% funding from external sources, at $7 million plus inflation, including an operational cost of $841,000, would result in an average annual rates impact of $61.04 a year from 2025.

Maintenance work at Oamaru airport and harbour ‘‘allowing us to compete for business opportunities’’ would have an average rates impact of $14.37 a year.

Over the next three years, the council is proposing to spend an extra $4.5 million on roads, including more gravel on highpriority roads, widening rural highrisk and narrow sealed roads, smoothing highpriority urban and rural roads, which, with a NZ Transport Agency subsidy of 55% would mean an average rates impact of $20.25 a year.

The council is proposing spending $600,000 over 10 years to manage erosion issues on council reserves.

The council does not expect to have any external debt over the life of the 10year plan.

But it uses internal loans to fund projects, total internal debt is expected to vary from 42% to 61% of total revenue over the course of the plan with the peak occurring in 2024.

The average household income in Waitaki is expected to remain static and lower than the national average.

In this financial year, the council will collect $30,076,000 in rates. By 202728, the council expects to require a $40,016,000 rates take.

The longterm plan consultation period, scheduled to be approved at next week’s council meeting, would begin on Friday and run through April.