Central Otago District Council (CODC) in its meeting yesterday (Wednesday, June 28) adopted the 2023-24 Annual Plan, set the fees and charges for that period with minor amendments, and set the rates, due dates and penalties during that financial year.

The average rates increase across the district was set at 11.2 per cent, an increase from 10.4 per cent consulted on in the Annual Plan. 

The rates increase will take effect on July 1. 

CODC chief financial officer Susan Finlay said council staff had spent considerable time balancing affordability at the same time as maintaining a level of service. 

CODC mayor Tim Cadogan said the council, unfortunately, had a perfect storm of a seven per cent inflation environment alongside increased depreciation costs related to increased valuations of the assets owned by the community, and increased insurance costs. 

“The 11.2 per cent rates increase proposed is probably something those of us around this table had never envisaged,” he said.

“We considered whether we should be cutting levels of services to cut costs but chose to hold the course of the level of service we offer rather than make knee-jerk cuts. However, council will be having a discussion with the community next year, being an LTP [Long Term Plan] year, over whether the council wishes to keep current levels of service if that would involve further significant rates rises."

Deputy mayor Neil Gillespie said he was “quite surprised” some other councils seemed not to be facing the same pressures.

“We could have pruned some of this out, saying, ‘we’re not going to fund this or fund that’, but we have learned that is just pushing it out,” he said. 

One of the amendments to fees and charges was a reduction in the general waste charge per tonne from $415 to $395 and Susan said there may be room for some further reduction in waste management charges but that was unclear as residents adjusted to the new bin types.

“We usually need a year to understand the changes in behaviour,” she said.