Last minute changes to the Long-Term Plan 2025-34 saw adjustments to the Central Otago District Council budgets were happening right to the eleventh hour.

Average rates increases have now been proposed at 13 per cent as confirmed at an emergency meeting late yesterday afternoon.

The LTP is now out for public consultation, after the council delayed its publication last week to fulfil audit requirements.

CODC was informed by Audit NZ of a technical accounting issue relating to the Long-term consultation document at its monthly meeting in Ranfurly last week.

That related to Three Waters (drinking water, wastewater and stormwater) and how the council recognised the transfer of Three Waters assets out of the accounts by the time changes to the delivery of water services came into effect in 2027.

The council also learned last week Timaru District Council had withdrawn from discussions regarding being part of a multi-council organisation for water services delivery.

A joint approach was one of the options CODC would be consulting the community on in both the upcoming LTP and the wider Southern Water Done Well consultation involving Central Otago, Gore, Waitaki and Clutha district councils.

In early March, Timaru councillors met and approved entering a “Commitment Agreement” with the four councils however just two weeks later informed the southern group it was no longer interested in being involved in a joint Council Controlled Organisation (CCO).

CODC chief executive Peter Kelly said council’s processes had been delayed by two to three weeks to incorporate Timaru into its financial modelling, which would now need to be adjusted.

It has been a rough ride for council - in February Peter apologised after staff found a processing error, which bumped up proposed rates to 14 per cent.

Audit NZ acknowledged to council yesterday there was a high level of uncertainty on the financial impacts regarding the Three Waters costs as they were dependent on other councils.

Mayor Tamah Alley said there was a general lack of clarity around how to treat Three Waters when trying to put together a long term plan.

Current and future land sales were also uncertain as they depended on demand and the market was currently volatile.  

While the average rates increases were currently set at 13 per cent, there were some “wild variations" within the district, with the majority of ratepayers only having to pay less than 10 per cent - Ranfurly residential was down as low as 1 per cent, Mayor Tamah

said.

Consultation opened today and continues to April 28.

Council has a number of community events where the public can come and ask questions about the Long Term Plan.

Have a story to share?

Contact [email protected]