Aimee Wilson
23 November 2023, 4:30 PM
Central Otago Mayor Tim Cadogan has warned rates across the district could rise above 20 percent next year, as the council grapples with increased costs throughout the local Government sector.
“Buckle up folks,” he told the Teviot Community Board yesterday in his Mayor’s report, as well as the Vincent Community Board earlier this week.
Describing it as horror show, he said depreciation of council assets, bridges needing fixed, massive audit fees as well as insurance were all things they couldn’t ignore.
“And, we are not alone, other councils around the country are facing these costs too,” he said.
Three Waters was another huge expense they were anticipating, and the recent outbreak of campylobacter in Queenstown had put a greater emphasis on protozoa barriers, in three of its plants - Cromwell, Patearoa and Ranfurly.
Over 10 percent of the rates increase would go towards the membranes needed to block the bacteria in water supplies.
Tim said while that had already been budgeted for in the 2018 Long Term Plan to be done by 2028, “now we’ll have to pull them in sooner, and it will cost more too.”
Describing it as a “pretty rubbish situation,” he asked the Teviot board to consider what things the community was doing now that they could do without.
Many households and businesses were already struggling with their budgets, and he warned between now and the next Long Term Plan coming out in June 2024, it would be a pretty rough ride.
One board member said it was a bit of a scare to hear the level of rates increase, and asked if there was anything they could do.
“If there are services that maybe you could put up to be cut, that will have a greater effect on the board,” Tim said.
Talking after the meeting, Tim said he realised now was the time to speak up about the huge rates increase, because the numbers were starting to add up.
“I’m not doing it to frighten people, but to get them aware that it is a situation.”
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