Calculators have been working overtime at the Ashburton District Council.

The upcoming rates rise was 8.71% at the start of the week, went up to 9.57% on Wednesday and dropped to 9.1% by Thursday.

After approving a draft annual plan in mid-March, carrying the 8.71% increase, the council held workshops on April 29 and May 6 to consider the impact of the Iran war on fuel costs.

Councillors were only told the increase had risen to 9.57% on Wednesday afternoon, prior to a media response being sent acknowledging the raise.

Chief executive Hamish Riach confirmed that due to the revision of fuel prices, electricity, and other cost increases, “councillors were advised [on Wednesday] of an overall draft average rates rise of 9.57% as a result of that work”.

“However, when looking closer at the detail, we've realised that rates penalties were included in the calculation, which they shouldn't have been for a year-on-year comparison.”

He confirmed the “revised, current figures” on Thursday are for an overall average increase of 9.15%, consisting of 5.43% for all council activities excluding water services, and 3.72% for water services.

“The annual plan is still considered draft up until it is adopted.”

That is scheduled to occur on June 30, the day before the document comes into effect.

The council was yet to confirm if councillors would have a chance to review the changes and reconsider details prior to its adoption.

The details of the changes have not been released, other than a reduction in the loan for the second bridge new road project from $20m to $16.9m.

How does 9.17% compare?

Comparing Ashburton’s increase against other Canterbury councils is more difficult now, needing to factor in those that include three waters services.

Selwyn District Council is looking like having a 4.5% rate rise – but that excludes the cost of drinking and waste water services.

The new CCO, Selwyn Water Limited, is consulting on an 18% increase for those services.

Ashburton’s three water services (drinking, waste and storm water) are going up 13.05%.

The Timaru District Council is proposing a 9% average increase, and Mackenzie is facing an 8.16% rates increase, both including three waters.

Timaru’s three waters delivery costs are 5.3% of the total, while Mackenzie’s is only 1.1%.

The new combined CCO for the Timaru and Mackenzie districts will start operating from mid-2027.

Waimate is signalling a 5.5% increase, which includes 4.2% for its three waters services.

The Christchurch City Council is proposing an overall average rates increase of 7.82%, including three waters.

Waimakariri District Council has a 4.99% increase on the table, including three waters.

Hurunui has a 5.31% increase, which includes collecting rates for three waters on behalf of its new water services CCO, Kaikoura Hurunui Water Services Ltd (KHWS).

Kaikōura District Council is proposing an average rate rise of 3.8 percent, excluding water services which it will collect for the new CCO.

Waitaki District Councillors agreed to a proposed 22% rate rise, including three waters ahead of joining Central Otago, Clutha, and Gore in the Southern Waters CCO from next year.

During the debate, Cr Mata'aga Hana Melania Fanene-Taiti asked if the council had “calculated the anticipated potential rates revenue loss from parts of the community that won't be able to afford it?”

Support services director Paul Hope said they “haven't because the assumption is although there might be an impact on cash flow. We will eventually collect the rates, basically because we can sell properties.

“We don't assume a one or two percent loss of revenue on the way through, we assume we're going to collect it all."

By Jonathan Leask