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299 days ago

Waimakariri ratepayers face near 9% hike

Nicole Mathewson Reporter from Northern Outlook

By David Hill, Local Democracy Reporter

Waimakariri ratepayers are set for a rates hike of nearly 9%.

Planning for population growth, tackling inflation costs and preparing for natural disasters are set to feature in the Waimakariri District Council’s 2024-34 long-term plan (LTP).

Council staff proposed a rates rise of 8.94% at the opening session of LTP deliberations on Tuesday morning (January 30).

The impact of high interest rates meant several large projects including a hydrotherapy pool for the Kaiapoi Aquatic Centre and proposed cycle way projects were deferred to reduce the impact on ratepayers.

Finance and business support general manager Nicole Robinson said the district’s population was expected to grow from 70,000 to 82,075 by 2034, requiring about 4950 new houses, based on Stats NZ’s high growth scenario.

‘‘That equates to 495 houses a year and we are already trending towards 700 consents for new houses this year.’’

To support growth, major projects in the LTP included the proposed Rangiora Eastern Link Rd, an extension of the Rangiora Library and Civic Centre and completion of the Southbrook Sports Club facility and Mainpower Oval developments.

She said staff identified 21 potential risks over the next 10 years, including natural disasters, climate change, inflation and changes from central Government.

The council planned to establish a permanent infrastructure recovery team this year to manage the growing number of adverse events the district was facing.

While inflation peaked at 7.3% in 2022, it was expected to drop to about 2.2% next year, allowing staff to predict rates rises will drop below 5% from next year.

But Robinson urged caution in an uncertain economic environment.
‘‘If we were to see a high inflationary environment continue it would have a huge impact on our expenditure.’’

The proposed Kaiapoi to Woodend, Rangiora (Southbrook) and Woodend to Pegasus cycle ways were due to be funded as part of the previous Government’s Transport Choices funding.

However, the fund has been canned by the new Government.

Chief executive Jeff Millward said there was cause for optimism.

Credit rating agency Standard and Poor's has confirmed the council’s AA long-term and A-1+ short-term credit rating with a stable outlook.

An A-1 credit rating with the additional plus (+) sign means the council’s ability to meet its commitments is ‘‘extremely strong’’, according to the Standard and Poor’s website.

The council was still paying off its earthquake recovery loan from the 2010 and 2011 quakes, but Millward said the council was in a strong position.

‘‘We have enough head room for not one, but two major adverse events.’’

The council’s deliberations were scheduled to finish on Thursday, with councillors meeting again on February 27 to adopt the draft LTP for consultation.

■ LDR is local body journalism co-funded by RNZ and NZ On Air.

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