​CODC sets rates rise for 2023-24

The Central Otago District Council (CODC) has set the rates for the 2023-24 financial year.

At the meeting in Alexandra today (Wednesday 28 June), the Council signed off on a 11.2% rates rise across the district, being an increase from 10.4% consulted on in the Annual Plan. The increase will take effect on 1 July.

"Council takes no pleasure in an average rates increase of this size,” Central Otago Mayor Tim Cadogan said.

“However, our Long-term Plan had this year down as a bump in the road for rates increase and unfortunately, that bump in the road has come at the same time as the highest inflation rate in a generation."

A 10.4% increase was consulted on in the 2023-24 Annual Plan, which included the one big-ticket item, the Iceinline Central request to put a roof on its rink at Alexandra.

“There has been a number of specific, unavoidable costs that have contributed to this increase. We were predicting 10.4% in our consultation but new costs that have come in since then, relating to new monitoring requirements for drinking water standards have contributed to the 11.2% average rise passed today. Other costs that have led to the overall increase include increased depreciation costs related to increased valuations of the assets owned by the community, insurance costs that have increased as they have for everyone and other general inflationary pressures. The bulk of the increases have come from factors that council has no control over.”

At the Council meeting, CODC Chief Financial Officer Susan Finlay advised that Council staff had spent considerable time balancing affordability at the same time as maintaining a level of service.

Mayor Tim confirmed that: “We considered whether we should be cutting levels of services to cut costs but chose to hold the course of the level of service we offer rather than make knee-jerk cuts. However, council will be having a discussion with the community next year, being an LTP year, over whether the council wishes to keep current levels of service if that would involve further significant rates rises."

• The Council adopted the 2023-24 Annual Plan along with the 2023-24 fees and charges schedule and to resolve the setting of the rates, due dates and penalties for rates during the 2023-24 financial year.