Council delivers lower than expected rates increase

The Gore District Council has delivered a district-wide average rate increase of 6.42% for the 2021/22 financial year.

The Council’s adoption of its 2021 – 2031 10-Year-Plan at an extraordinary meeting yesterday has given ratepayers a lower than expected rates increase for this year.

Gore District Mayor Tracy Hicks said this rates setting and 10-Year-Plan process had been the most challenging during his years as mayor.

“It’s pleasing to get to this stage.”

Chief Executive Stephen Parry endorsed the mayor’s comments.

“We can’t underestimate the impact of the February floods and COVID-19 in eroding into our planning time for the 10-Year-Plan.”

The exacting audit process had also added to the time required to deliver a completed plan, Mr Parry said.

The 6.42% average increase means Gore residential ratepayers are looking at paying $3.00 to $5.00 more a week, depending on their property value. Mataura residential ratepayers will pay $3.00 a week more.

Chief Financial Officer Lornae Straith said the key items resulting in the change from the proposed 8.22% rates increase were:

• A revision of the roading programme as a result of the Waka Kotahi New Zealand Transport Agencies funding announcement, which reduces the roading programme for the District in the first three years of the 10YP
• Funding the cost of the District Plan by way of loan given it has a multi-year benefit to the community, and
• The Otama water rate change from being fully funded from rates to funding being split between rates and reserves.

Capital works funding, coupled with the rates suppression initiatives undertaken last year in response to COVID-19, were the main drivers behind the rates increase.

This year was the only year of the 10YP where the Council breaches its self-imposed 5% per annum cap.

The Government’s 3 Waters Reforms has caused uncertainty around where the management and delivery of wastewater, stormwater and drinking water will rest in the future.

That said, the Council has made a commitment to invest $54.7 million over the next decade in infrastructure renewals and upgrades. A priority is upgrading the Mataura and Gore water treatment plants to fully comply with national drinking water standards.

Another major infrastructure project is the separation of wastewater and stormwater pipelines in Gore and Mataura.

After considering feedback on the funding of wastewater and stormwater pipeline separation on private properties, it was decided the cost would be shared equally between the property owner and ratepayers. The amount an individual ratepayer would be expected to pay will be determined once detailed planning and cost estimates for the connection to the street network has been completed.

As a result of submissions to the 10YP, the Council agreed to provide $25,000 a year from parks and reserves budgets for the Hokonui Mountain Bike Club to develop and maintain cycle tracks in the District.

Sport Southland gets $10,000 a year for the life of the 10YP to assist with the employment of a coordinator to implement its Regional Places and Spaces Strategy. The Council also agreed to underwrite any funding shortfall, up to $237,000, to upgrade the St James Theatre.

The Council will be undertaking further consultation with the rural community about the future of the Rural Special Fund. It will also carry out further consultation about the future of the old Gore library once it has more details about some of the options.