The Selwyn District Council is making efforts to significantly reduce rates hikes for the upcoming year, although this plan entails certain conditions.
During a meeting on Wednesday, councillors decided to seek public input on an average rates increase of 5.4 percent. Ratepayers will have the opportunity to provide feedback on options of 4.9 percent and 6.5 percent, each with different implications.
The preferred option represents a substantial decrease compared to last year’s rise of 14.2 percent. However, all proposed options exclude water charges, which are now managed by a separate entity known as Selwyn Water Ltd.
In an attempt to find savings, councillors are considering transferring some costs from general rates to user fees, potentially leading to higher building consent fees, aquatic and fitness class charges, and dog registration costs.
To achieve the 5.4 percent increase, the council may need to scale back on library programs and exhibitions.
Mayor Lydia Gliddon acknowledged that difficult discussions with the community would be necessary to navigate these changes.
The draft plan outlines that a lower rates hike of 4.9 percent could be achieved by significantly reducing recruitment, eliminating certain roles from budgets, and cutting consultant expenses. However, staff does not recommend this approach as it could impact the council’s ability to meet legal obligations and provide services.
The plan also includes investments in road upgrades, Lincoln’s town center, Whitecliffs Bridge replacement, and Leeston Medical Centre remediation, all aimed at supporting the district’s rapid growth.
Revenue projections for the next financial year stand at $213.6 million, with $196.5 million allocated for operating expenses and $86 million for capital infrastructure.
Consultation on the proposed changes will commence on Monday.
