ECan’s 16.2% average rates rise a smaller hit for Ashburton

The Team Reporter from The Press

From local democracy reporter Jonathan Leask:

Environment Canterbury’s annual plan carries a 16.2% average rates rise but the local councillor says that won’t be the case in Ashburton.

Councillor Ian Mackenzie said Ashburton urban ratepayers were looking at rise of about 4%, while the majority of Ashburton rural would have a decrease.

Mackenzie said the rural decrease was a combination of a financial policy readjustment around the Hinds MAR project after ECan confirmed its project funding was a contribution not a loan, meaning it would be funded by the general rate, and borrowing the funds for the new land and water plans.

“That has made a reasonable difference in cost and the rate rise,” Mackenzie said.

“The MAR project and the land and water plan funding have probably made the biggest difference to rural Ashburton and rural Selwyn [rates].”

Funding flood recovery from the general rate, as opposed to targeted rates, would also have an impact, he said.

The May 2021 flood recovery work has been estimated to have cost about $20 million, with about $7.5m from the Government's National Emergency Management Agency.

ECan would fund the remainder by borrowing up to $12.2m to be repaid by general rates over 10 years.

Mackenzie said ECan was also still hoping the Government would answer its request to co-fund flood management in the future.

“When we do the budgets on what we need to do along the Ashburton River, we probably need to collect at least half as much if not twice as much more to manage it properly, and we are hoping the Government comes to the party.”

If the Government did not agree to the proposed co-funding of flood management, Mackenzie said ECan would likely be forced to start increasing the take from the river rating district, which had been reclassified.

The Ashburton River/Hakatere rating district has gone from 13 rating classes to six classes and an extended boundary to ensure “those who are benefiting are paying their fair share”.

“It’s the same amount of money from more places.”

Mckenzie said the Selwyn District Council has approached ECan to work on a similar river rating system for the Selwyn River so that “everybody pays and we can do a better job managing the river and its tributaries”.

He hoped that work could be done in time for next year’s annual plan process or for the long-term plan the following year.

BY THE NUMBERS

ECan provided some sample properties that showed an Ashburton urban property that was worth $330,000 in 2021-22 is now worth $430,000 in 2022/23 so its rates will rise from $201.55 to $296.30 – a $94.75 rise.

An Ashburton rural property that had been worth $4,960,000 and paying $2,293.05 is now worth $4,760,000 and will pay $1,941.68 – a $351.36 decrease.