Districtisation decision:

The Central Otago District Council met this week to discuss results of the recent consultation regarding whether or not to districtise more council services.

The Council considered and consulted on the following options, with submissions heard on Tuesday night (24 September 2024) and a decision made at the council meeting today (Wednesday 25 September).

Option 1: Full districtisation of properties, parks, cemeteries, pools and museums.

Option 2: Districtise property, parks, cemeteries, pools and museums, but include a rating adjustment for the Teviot Valley ward to offset pool charges.

Option 3: Status quo, no change. Property, parks, cemeteries, pools and museums continue to be funded by ward rates.

The decision was made to partially districtise properties, parks, cemeteries, pools and museums (18% of services) using a district-wide rate and decision-making in line with other council services such as roading, waste and the three waters (82% of services), which are already districtised.

A majority of respondents (75%), selected Option 3, a status quo.

Twenty-five per cent of respondents chose either Option 1 or Option 2.

Respondents in the Vincent Ward were divided between Option 3 (43%) and Option 1 (41%).

Teviot Valley Ward respondents favoured Option 3 (59%) and respondents in the Maniototo Ward favoured Option 2 (60%).

Cromwell Ward respondents overwhelmingly selected Option 3 (90%).

It was noted that the demographics of respondents showed a disproportionately high response rate from the Cromwell Ward (68%) and those 60 years of age and older (51%). When looking at respondents’ connection to the district, 85% either live, work or pay rates in Central Otago District (15% of respondents did not answer that question).

Commenting on this outcome, Central Otago Mayor Tim Cadogan said:

“Like every council across the country, Central Otago District Council is facing significant cost pressures that, under our current practices, could only be met by rates and debt, with debt adding to the rates burden. We heard clearly from residents this year when the rates increase was on average over 18%, that action needed to be taken. The decision today places this council well for next year’s LTP and for those that follow by ensuring that all council spending is determined around the council table with a district-wide financial view, with the four board's feeding into decision-making but not spending without oversight."

Mayor Cadogan also said:

“Despite the Teviot Valley having benefited and continuing to benefit significantly from roading and three waters already being districtised, Councillors took the view that the impact a full districtisation decision would have on Teviot Valley rates would be unfair and would be potentially damaging to the Valley’s economy”.

Further work remains to be done on changes to the delegations to boards as a result of this decision. Mayor Cadogan said it was crucial that the boards remain empowered and encouraged to be the voices of the communities they serve.

It had been decided that regardless of the Council decision on districtisastion, the delegations paper would be brought back before Council before the end of the year.

Recommendations from today’s meeting:

That the Council -

A. Receives the report and accepts the level of significance.

B. Notes and considers the submissions made on the districtisation proposal.

C. Agrees to the district-wide rating of all council activities including museums, excluding current community board grants, but include a rating adjustment for the Teviot Valley ward to offset pool costs.

D. Notes that prior to the December Council meeting, a workshop on the delegations with Council and Community Boards will occur.