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Selwyn mayor reaffirms promise to ratepayers

Selwyn mayor reaffirms promise to ratepayers

Selwyn’s mayor is doubling down on her commitment to keep the district's next rate rise lower than originally projected.

And it won’t be simply because water and wastewater are moving off the council’s books, she said.

Mayor Lydia Gliddon has previously stated her intent to get the next rate increase to a single digit, down from the projected 13.3% in the long-term plan.

“That remains the plan," she told Local Democracy reporting.

Gliddon refrained from making any promises about what the final figure will be.

Two members of the public quizzed the council on the upcoming rate rise in the public forum at the council meeting on Wednesday.

Zoran Rakovic asked the council to adopt a formal motion, presenting his own suggested wording, committing to lower rate increases.

“A public statement that you intend to,” he said.

Rackovic had unsuccessfully run for council in the Kā Puna Springs Ward, initially as an Act candidate.

Selwyn's council recently promised to find savings so the next rate rise is much lower than projected.

Rackovic's motion was for an amendment of the long-term plan and a suggestion the council focus on “roads, rubbish, and pipes” and everything else be up to community consultation.

“People would accept the [extra] cost if the result would be moderation to the double-digit increases.”

Gliddon responded that through the annual plan process “we are looking to identify a whole lot of cost savings for council”.

She said a long-term plan amendment “incurs severe cost to our community and we have been elected on a cost-saving basis”.

“There is a smarter way to do things.

“We can deliver savings on what the projected outcomes or increases were through an annual plan process, without triggering a long-term plan amendment.”

Before Rakovic spoke, Sue Boyd had sought clarity on whether the touted reduction was only a result of water and wastewater services being transferred to Selwyn Water Limited from July 1.

“Is this going to be what the council sees as a reduction in rates? If so, I see this as very misleading,” Boyd said.

“That's going to show a reduction in rates, but it's not actually because it will be a separate account which is still part of rates.”

Gliddon confirmed it was not the case.

“We are not relying on drinking and wastewater being removed from your council rates demand to deliver a decrease.”

Acting chief executive Steve Gibling said that the council are “reviewing our entire operating budget”.

The annual plan process will have a six-week consultation for the community to see the details about the proposed “reduction opportunities” and any impacts on a range of services, projects, and activities, he said.

“You'll get enough clarity over the next three to four months about where some of those savings are coming from, what does that mean for the community, and how you get a chance to have a say in that.”

The Government recently announced plans to introduce a 4% cap on rates for local councils from 2029.

From 2027, councils will also be required to consider the impact of rates caps on their long-term plans and report on areas of financial performance.

"The full regulatory model will take effect by 2029. However, officials will be monitoring rates rises nationwide as soon as the legislation is enacted," Local Government Minister Simon Watts said at the time.

"Where councils propose increases beyond the proposed cap, this may present grounds for intervention under the Local Government Act."

By Jonathan Leask