Ian Mackenzie isn’t happy with Environment Canterbury’s proposed 10 per cent rate rise, but believes it could have been worse.
The Mid Canterbury-Ōpākihi councillor said that sticking to what was already proposed in the long-term plan (LTP) stifled any opportunity for a further increase in spending by the regional council.
“It would be nice if it were lower, but the LTP committed us to a whole lot of expenditure, some of which I don’t personally support,” Mackenzie said.
Sticking to the plan is a case of being efficient with the ratepayers’ money, avoiding an expensive consultation exercise, and some “politics at play,” he said.
“The danger was, given the nature of the council, if we agreed to make a radical change away from the LTP, then it was more likely councillors would have supported a larger rate rise.
“Some think we aren’t spending enough money, and I think we are spending too much.”
The proposed 10 per cent rate rise is made up of the original 4.6 per cent indicated in year three of its long-term plan plus the increased budget agreed in last year’s Annual Plan for the public transport fare trial, funding flood recovery, and replenishing the general reserve.
“The flood recovery is clearly of benefit to our district, given the Hinds and Ashburton rivers were significant beneficiaries of that funding,” Mackenzie said.
ECan is funding its almost $13m share of flood recovery on the region’s general rate, but the Ashburton District isn’t impacted by the public transport funding.
“Ashburton gets no benefit, and so there is no cost for public transport.”
That puts the rate rise in the Ashburton District lower, he said.
Based on the sample properties provided by ECan, the rates for an Ashburton rural property worth $4,760,000 will go up from $1941 to $2101 – a $159.42 (7.5 per cent) hike.
An Ashburton urban property worth $430,000 will have its rates go from $296 to $308 – a $12.18 (4 per cent) increase.
The 10 per cent average rise is the lowest in recent years, with 12.6 per cent (which had been proposed to be 24.5 per cent) in 2021-22, and the forecast 24.1 per cent for the current 2022-23 period was reduced to 16.2 per cent.
Feedback on the draft plan opens on February 27 and closes on April 3, followed by hearings and deliberations, before the 2023-24 plan will be adopted on June 21.

• By Jonathan Leask