New Central Otago Mayor Tamah Alley had a message right on Christmas to ratepayers struggling to make ends meet.

“If you can’t afford to live in your house and pay your rates now, you definitely won’t be able to in two years time.”

That was in response to a report to Central Otago District Councillors to consider items for inclusion in the 2025-34 Long-term Plan Consultation Document discussed at its final meeting held in Cromwell yesterday.

The community will be consulted on the Long Term Plan (LTP) from mid-March with the final decision on the rates increase for 2025 to happen at the end of June.

Proposed rates could increase from 18 per cent to 23.4 per cent in 2025 if new operational grants to both community and commercial groups totalling $1.5million are approved under the LTP, the report said.

The bulk of the proposed increase will be water, wastewater as part of the Government's new requirements of local water services delivery costs across the country, under Local Water Done Well, as well as roads and rubbish.

Council discussed additional projects to be added to the LTP consultation including the Teviot Valley Community Board's request CODC take over running the Ida MacDonald Roxburgh Pool.

However the $250,000 cost of running the pool, would be offset by the proposed closure of Alexandra’s outdoor pool.

Also to be to included in the draft consultation document was a $200,000 grant to the Maniototo Area School towards the redevelopment of their turf, as well as another $300,000 to the Molyneux Turf Incorporated in conjunction with Dunstan High School.

No beating around the bush… Central Otago Mayor Tamah Alley has delivered a strong message about proposed rates increases of 23.4 per cent next year. FILE SHOT

A funding shortfall of $1.6million for the new Manuherekia Valleys Community Hub would also be consulted on, along with a grant of up to $250,000 for a world class Supercars event at Highlands in 2026.

Cr Nigel McKinlay was the only person opposed to the motor racing event saying it was excessive and not part of council’s core business.

But the council stopped short of including $500,000 to the Cromwell Early Learning Centre for its building upgrade, saying childcare was not its responsibility.

“Asking ratepayers to pay $81 a year extra to pay for childcare for 30 children is unfair,” Mayor Alley said.

Councillors discussed each of the reports recomendations.

At the end of the meeting, Council moved to receive the report accepting it's level of significance and noting at the time of writing the report, the average rates increase was at 23.4%.

Council also noted the list of new operational grants to community or commercial groups contained in the report totalled $1.5million, equating to a 2.86% rates increase.

It also noted only one item in the paper - how water will be delivered in the future, Waters Services Delivery Plan - was required to be consulted on either as part of this Long-term Plan or separately. All other items Council had discretion to fund or alter the level

of service.

Councillors also noted budgets are still in draft and some numbers in the resolution may be adjusted as the budgets are refined.

The Central App asked Mayor Alley to clarify the outcome of the discussion in council and she responded, "we did start at 23.4 per cent as the potential rates rise – but we actually finished the day at around 11% (which may increase slightly depending on how many halls we keep and a few other things.)"

Grey Power Central Otago president Stan Randle told The Central App the proposed rates increase was “unbelievably high” and unacceptable.

He said people also did not realise the valuations of properties were increasing all the time in Central Otago, and the reality was many ratepayers would have to pay a lot more.  

Council will finalise its LTP discussion document at next meeting at the end of January.

20 December 2024 *This story has been updated to bring clarity to previous points that may have been unclear or confusing to readers.

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