Saturday, March 30, 2024

ORC breaks down proposed rates increases

Neal Wallace
Meeting the cost of government policy will soak up the bulk of a proposed 48% rise in Otago Regional Council (ORC) rates next year.
Reading Time: 2 minutes

Of the proposed 48% rise for 2021-22, 44% is to fund unplanned work such as freshwater reforms imposed by the Government and a council decision last year to use $4.9m of reserves rather than increase rates due to the covid-19 pandemic.

“So, to break it down, to fund the unplanned work and the covid-19 general reserve offset equates to a 44% increase to general rates,” an ORC discussion document states.

“That’s before any new long-term plan funding is even factored in.”

The council’s preferred rate setting option as set out in its Long-Term Plan, will see rate rises of 17% in 2022-23, 10.6% in 2023-24 and then average 3.5% through to 2030-31.

Total rate income this financial year is about $27m, but this will rise to $40m in 2021-22 and $65m in 2030-31.

Another factor facing the ORC is government pressure to implement its delayed water plan, which includes replacing mining rights to use water.

The impact of government policy such as replacing the Resource Management Act with three new pieces of legislation, new staff and resources to address water quality policy accounts for an initial increase from the 2020-21 rates of about 35%.

“We have attempted to balance your needs as a community with those projects we must undertake,” it said.

The council is also planning to reduce greenhouse emissions by investing in public transport, change the way it manages pests, balance its budget and reprioritise the restoration of waterways.

“Our work to understand our emissions is an important start,” it said.

“The recent release of the Climate Change Commission’s report confirmed for us that we must provide better public transport and work to get people out of their cars and onto buses and active forms of transport.”

Its resourcing for pest management in biosecurity does not meet community expectations or achieve the Regional Pest Management Plan’s (RPMP) intended outcomes.

“To achieve Otago’s objectives in biosecurity and biodiversity, increased investment and increasing our resourcing capacity and capability is needed to undertake new areas of work and expand services.”

Its preferred option will cost $3.3m through a regional targeted rate to fund extra staff for education, engagement and enforcement.

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