Large rate rises proposed for Hurunui

Nicole Mathewson Reporter from The Press

By David Hill, Local Democracy Reporter

Hurunui ratepayers can expect hefty rate rises over the next two years.

Average rate rises of 12.41% for this year and 14.14% for next year (2025-26) have been signalled in the Hurunui District Council’s draft long-term plan (LTP).

Speaking at an extraordinary council meeting on Tuesday, chief financial officer Jason Beck said he expected the rates rise to drop below 5% in 2026-27.

He said the proposed rate rises are in line with other councils and reflected the significant cost increases and impacts of regulatory changes the council faced.

The council was also continuing to upgrade its three waters infrastructure over the next two years.

Deputy mayor Vince Daly questioned whether ‘‘rates smoothing’’ could be introduced to spread the impact of rate increases over the next three years.

‘‘A lot of people are on fixed incomes, so I think we need to look at balancing it out instead of having two big rate increases and then going under 5%.’’

Beck said some form of ‘‘rates smoothing’’ was possible by spreading out debt repayments.

‘‘It can be done. It doesn’t move the cost, but it moves the funding of the cost from the rates in year one out to years two and three.’’

Chief executive Hamish Dobbie said he was not in favour of ‘‘rates smoothing’’.

‘‘We’ve done it before and something else always happens and we end up having to push the rates up to cover extra debt.’’

An expenditure of $368.6 million was proposed over the next 10 years, with roading ($160.8m) the biggest expense, followed by three waters ($142.6m) and other capital expenditure including the Hanmer Springs Thermal Pools & Spa ($65.2m).

Beck said funding social housing was also proving to be a headache.

The initial budget allowed for a 10% yearly rent increase, but this was found to be unsustainable and has been reduced to 5%.

Social housing ownership will be reviewed as part of the LLT consultation document.

‘‘We have a social conscience, so we want to have the provision of social housing, but we need to look at what our long term commitment is,’’ mayor Marie Black said.

The council’s debt level was expected to peak at $142m in 2030-31, before dropping back to $116m in 2033-34.

This equates to a debt to revenue ratio of as high as 161.29%, so is dependant on a change in the Treasury policy which limits it to 125%, Beck said.

The council will meet again on March 26 to adopt the draft LTP for consultation.

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