SDC faces big decisions in ‘challenging times’
A Southland District Council document titled “These Are Challenging Times” reveals the massive costs it faces as it prepares to consult on a double-digit rates rise.
Mayor Rob Scott’s column in the document said in the past three years, the cost of bridges had gone up 38%, roading costs had risen 27% and the council’s three water costs (stormwater, drinking water and wastewater) had gone up by more than 30%.
Interest rates had risen substantially and the cost of insurance had increased well above CPI, he said.
Scott and his councillors will meet today to release the Long Term Plan 2024-34 public consultation document.
The document included a proposed 13.66% rates rise in the 2024-5 financial year, with the councillors to decide today whether that figure would go out for public consultation.
Key issues the council would consult on for the Long Term Plan included whether to introduce a monthly glass recycling bin collection and whether to introduce a partial or full general rate for the Te Anau Airport Manapouri’s annual shortfall in operating costs.
The public would also be asked its views on whether the council should maintain or reduce spending on the district’s large roading network, given the massive costs involved; and whether $322m or $259m should be spent on the council’s three water services over the next decade, depending on how fast the work was done.
Council chief executive Cameron McIntosh indicated the scrapping of the previous Government’s Three Waters legislation would result in higher rates increases.
Up until last year, the council was required by law to transfer its activities of drinking water, wastewater and stormwater to a separate entity.
As the council would not have been upgrading, maintaining or operating the waters activities, “your rates would have reduced significantly”, his column said.
“A reasonable number of New Zealanders were unhappy with that plan and the incoming Government has heard that, and scrapped the law.
“As a consequence, the waters activities are now staying with the council, but this has meant some very large costs are anticipated by year 10 on the Long Term Plan.”
Scott was in Wellington with McIntosh speaking to Department of Internal Affairs officials about the Three Waters issue yesterday. They were advocating for the right level of regulation and alternative funding sources so all the costs didn’t fall on ratepayers.
“One of the comparisons we gave is we have the same number of wastewater plants as Auckland, and Auckland has 92,000 [ratepayers] servicing each plant, and Southland District has 611 ratepayers servicing each wastewater plant.
“So we were making sure they were aware, it’s not a one-size-fits-all.”
If the council released its Long Term Plan consultation document today, as expected, the public would be asked its views on its contents between June 5 and July 5.
The plan had to be adopted before or on August 26.