The Council’s draft 2024-34 long-term plan (LTP) budget for the coming year is currently sitting at an 11.5% average rate increase.

The draft plan includes $8 million on water supply, which is an approximate 26% lift on this year’s budget to keep up with drinking water standards.

It also includes $10.2 million (before NZTA subsidy) on roading, an approximate 24% increase on current year’s budget in response to community feedback on the condition of our roading network.

These two activities alone contribute close to 8% of the draft rates increase.

Mayor Neil Brown said high inflation, interest rates and Government regulation all added to a challenging long-term plan.

“We know that costs have soared for people in their daily lives. Rising costs have hit Council business too and so we’ve had to be discerning about what we think the district can afford.”

The Council will need $5.4 million more in rates revenue in the next financial year under the draft proposed plan.

“We’ve tried to strike a balance over the next 10 years between keeping rate rises modest while also ensuring Ashburton District continues to be the district of choice for lifestyle and opportunity.”

Mayor Brown said there was a lot of robust discussion about what would be in and out of the budget to get to this draft stage.

Some reserve funds have been used to help reduce the impact.

Councils across New Zealand are also expecting rates increases in the double digits just to maintain their current levels of service, Mayor Brown said.

“With affordability top-of-mind, we need our residents to tell us if we’ve got the balance right when we go out for consultation next year," he said.

The council will be asked to consider and adopt the draft long-term plan budget in the New Year with community consultation to kick off in late March.