Big rate hikes proposed for residents
Tasman ratepayers are facing a rates hike of 9.06%, while in Nelson the proposed increase is 7.2%.
Both councils will consider the proposed rates hikes at meetings on Thursday, where councillors will vote on whether to send their draft annual plans out for consultation. Councils are required to adopt the annual plans by June 30.
The proposed Tasman increase is more than double the 4.04% budgeted in the council’s long-term plan.
In a report to councillors, released on Monday, team leader community policy Alan Bywater and finance manager Matthew McGlinchey said that 4.04% was ‘‘not now a practicable option’’.
The increase was due to ‘‘largely increased or additional costs outside the council’s control’’, the report said.
‘‘This inconsistency results from the substantial changes to the council’s wider operating environment since the Financial Strategy was adopted which has seen the council face several unanticipated and largely unavoidable cost increases.’’
Nelson Mayor Nick Smith said tens of millions in extra costs for repairs from last August’s rain event, the highest inflation rate in 30 years and soaring interest costs made this year’s budget particularly tough. The proposed 7.2% rates increase was in line with inflation.
‘‘The council is very aware that households and businesses are currently under huge financial stress,’’ Smith said.
‘‘We are not big enough to counter the broader impacts of sharply rising costs. The best the council can do is not make the problem worse.’’
Smith said capital expenditure savings of $17.6 million had been made in 2023/24 by not proceeding with the new riverside library as projected in the previous council’s Long Term Plan. There had also been $4.1 million of general operations savings.
But he said the savings had been offset by increases in costs for interest, staff, depreciation and August storm repairs.
The council proposed to spread the storm repair costs out over 10 years.