Cantabrians are describing proposed rate hikes as “scary” and “ridiculous”.
The Regional Council, known as Environment Canterbury, has released its long-term plan, which lays out $4.2 billion in spending over ten years.
It suggested a rate increase of 24% to cover its spending.
But one man spoken to by 1News said: “There will be a lot of people who are going to suffer.”
Environment Canterbury Chair Peter Scott said inflation is the driving cause “so it’s no excuse, it’s just a matter of fact”.
“It’s been a real balance, as we weigh up the ‘must-do’ work with affordability," he said. "However, it’s now up to the community to tell us which services are most important to them and how they want their rates spent.
“For instance, would you support more investment in flood and river resilience, if it meant we had to cut back on regional park maintenance? Do you agree with a full-throttle approach to public transport investment? Are there services that you’d prefer us to wind back, if it might reduce the potential costs to ratepayers?
“What’s the cost of taking action, versus the cost of not doing enough?”
Scott said the council wanted a world-class transport system that would see more electric buses and increased frequency and reliability. Another focus is protecting communities threatened with flooding by rising rivers.
Interest and insurance costs
Christchurch City mayor Phil Mauger said he is pinning his council’s 13% rate rise on interest and insurance costs.
“We’ve got to lower our costs to make it easier for the people out there.
“In some respects, they’re actually getting less cause we’ve chopped a lot of stuff out of it. It was 18%,” said Mauger.
Local Government New Zealand chair Sam Broughton said the dramatic rate increases are common across the country.
“This is a really tricky conversation that councils are brave in having with their communities and I really commend that. But for communities, councils need to hear your feedback.”
Scott has also encouraged everyone to look through the proposals and start having conversations.
“We won’t know what trade-offs you’re prepared to make, or if you’re comfortable with where we’ve landed unless you tell us.
“We have limited ways to fund our work. About 60 percent of the proposed first-year costs would be covered by rates – the rest would be funded by grants, fees and charges, and debt. All of our proposed options involve borrowing an extra $16.4 million. How does that sit with you?”
Scott said his council had asked for help from the central Government to fund flood protection given they’re protecting assets “like Chorus cables, like Waka Kotahi bridges, like Kiwi Rail bridges”.
Local Government Minister Simeon Brown said local government has primary responsibility for flood risk management.
“I expect councils to be engaging and working with the owners of private and public infrastructure to provide appropriate levels of flood protection.
“I am aware that the LGNZ Regional Sector has made a submission to number of ministers on co-investment in flood protection in advance of Budget 24,” said Brown.
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