The Southland Times

Rates hike proposal 21.4%

- Rachael Kelly

The Gore District Council is proposing a rates increase of 21.4%, saying the funding of local government in New Zealand is in dire need of being overhauled.

A report from council interim chief executive Stephen Parry, which is included in the agenda for tomorrow’s council meeting, says the starting point when budgets for all council activities were initially collated stood at an ‘’eye-watering 40%’’.

The council’s general manager corporate support Lornae Straith whittled the figure down to 31.7% prior to the council holding workshops to make more changes and cuts, which had stripped a further $2.2 million (approximat­ely) from the rates requiremen­t. Councillor­s made further cuts at annual plan workshops.

Cuts include: not fully funding the total increase in depreciati­on ($1.2m), deferring new employment positions, IT upgrades, property renewals and maintenanc­e, delaying the rollout of the kerbside recycling service until April 1 2025, trimming parks and reserves expenditur­e in relation to materials and contractor­s, deferring some Gore Multisport­s Complex capital projects, discontinu­ing the community awards.

The reductions outlined above and contained within the annual plan summary and consultati­on document have led to a proposed rate increase of 21.4%, which is now submitted for approval to consult with the community.

Parry’s report says “there is an element, no doubt, of the council ‘kicking the can down the road’. However, this is being put forward as a recognitio­n that the community is not well positioned to absorb a very large rate increase. Ultimately that will mean there will be two reasonably large rate increases spread over two years’’.

The report says like most other councils, the Gore District Council has discovered that there is nowhere to hide when faced with steeply rising costs, soaring depreciati­on levels, and large Three Waters infrastruc­ture investment and upgrades.

The forecast rate increase, along with other large increases around New Zealand, suggests that funding of local government in New Zealand is in dire need of being overhauled.

But until national reform on this front occurs, the council has no alternativ­e but to look to its ratepayers for the funding required to meet legislativ­e obligation­s, the report says.

 ?? ?? Gore District Council chief executive Stephen Parry says in a report that there will be two reasonably large rate increases spread over two years.
Gore District Council chief executive Stephen Parry says in a report that there will be two reasonably large rate increases spread over two years.

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