Council not immune to rising costs

Central Otago District Councillors will consider the organisation’s draft budget for delivery of the draft Annual Plan 2023-24 at this Wednesday’s full Council meeting.

The Annual Plan reflects the work programmes previously consulted on by Council, but inflationary pressures have pushed the delivery costs higher than anticipated when the Long-term Plan was approved in 2021.

Councillors will discuss a report that outlines the “known unmanageable inflationary increases” driving the proposed rates rise, which includes increases in insurance renewal premiums, and revaluation of council property and waste management assets pushing up depreciation expenses.

Increased standards and associated compliance costs are also a contributing factor. Pools are one example of Council’s operations where increases are impacting, with chemical expenses doubling in some instances. Another is in waste management, due to changes in the Emissions Trading Scheme and Council providing an increased level of service from 1 July 2023 with the additional organics bin. The additional service is being introduced to divert material from landfill because it is better for both our environment and our wallets as disposal to landfill levies are expected to increase sharply.

Members of the public are welcome to listen in as Council discusses the item by attending in the public gallery on the day or via a livestream link on Council’s website .

Following Council’s meeting, the draft budgets will be presented to each community board for consideration. Pending approvals, the final budgets will be presented back to Council for approval to consult with the community at its 30 March meeting.