Councillors to set 2023/2024 rates increase at Council meeting
As part of the 2023/2024 Annual Plan process to consider the work programme and budgets, Councillors will set the rates for the 2023-2024 financial year at next week’s Council meeting (Wednesday 3 May).
There are no significant changes to the work programme from the Long-term Plan. However, just as rising prices are impacting all parts of the community, they are also affecting the Council’s work-related costs.
As a result, Councillors will consider potential rate increases of 6.9% and 8.5%, which are higher than the 5% forecasted in the 2021/2031 Long-term Plan.
A potential rate increase of 6.9% would equate to approximately $23 per year for residential ratepayers; 5% would equate to about $17 per year; and 8.5% would equate to about $28 per year. Actual amounts for individual ratepayers will always vary due to differences in property valuations.
A positive contribution to this year’s budget has been the unexpected return of the cruise ship and marine fees. This unbudgeted income will help the Council to keep the rate increase down, to get out of operating deficit and will support our coastal science work, the Fiordland Undaria control programme and other coastal activities.
Environment Southland Chairman Nicol Horrell said Councillors held the rate increase to 5% last year in the face of 7% inflation, but that this is not sustainable.
“Prices are going up across the board. The cost of doing our work has increased by about 9%, which is $3.9 million higher than forecast in the 2021-2031 Long-term Plan.
“Inflation is higher than predicted, creating an economic situation of supply challenges, labour shortfalls, rising costs and high interest rates, to which we are not immune.
“In the face of these pressures, the Council has looked at its own expenditure and worked hard to keep any rates increase as low as possible, while still delivering the services we committed to in the Long-term Plan.”
Key work programmes include improving Southland’s climate resilience through flood defences and progressing the freshwater and land work. These programmes sit alongside all our other services, from consenting and compliance to biosecurity, land sustainability and the harbourmaster.
The Long-term Plan is a 10-year plan, which is reviewed every three years and outlines priorities, service levels and budgets.
This Annual Plan is Year 3 of the 2021-2031 Long-term Plan. While we are not formally consulting on the 2023/2024 Annual Plan we are open to receiving feedback, which can be provided via email to services@es.govt.nz or by talking with your regional Councillor. Information is available in the Council agenda and the 2023/2024 Annual Plan will be available on our website in due course.
