Rates are expected to rise an average 7.3 per cent over the Ashburton District for the 2025-26 financial year.

Mayor Neil Brown said councillors had spent a lot of time scrutinising Annual Plan budgets over a series of intense workshops and it was good to see a figure that was lower than first forecast.

“We know there are lots of financial challenges at the moment for everyone and council is not immune to inflation and insurance increases either, so to be able to get to 7.3 per cent when we initially signalled 10.1 is a solid outcome.”

The increase would affect properties differently depending on their capital value (and any change in the recent three-year revaluation), where they are located and the Council services received, and it translates to a $135 rates increase for a $870,000 Ashburton home and a $759 increase for a $9.3 million farm.

Council expects to collect about $57.6m in rates, which it will use to run the district. It plans to call on $4m from cash reserves and borrow for some big projects, including $16 million for Three Waters projects.

After direction from councillors at a final workshop today, staff will now begin finalising the draft Annual Plan, with the 7.3 per cent increase in rates. The final plan is on track to be adopted by Council before June.

Mayor Brown said the focus had been strictly on the efficient delivery of core work, like drinking water and roading, as well as some forward planning.

“We’ve increased the fixed drinking water charge for households on an urban scheme by 5 per cent to $741.50 and that is really gearing up for the new Local Water Done Well work programme that will come online in the next couple of years.

“It’s vital that Council’s community drinking water schemes are compliant with the new standards and that we can also prepare for the new wastewater standards that are coming.

“We’re also planning to spend nearly $21m on our roads and footpaths, and that includes the extra $3m Council decided to put in because of reduced subsidies from NZ Transport Agency. Canterbury councils are currently lobbying Government to improve these subsidies because the South Island has been underfunded in recent years.”

Mayor Brown said additional funding for Council’s new connecting road to the second Ashburton bridge was not part of this Annual Plan. NZTA is building and paying for the bridge, and Council is paying for the new connecting road at Tinwald.

“The actual cost of constructing this road will be clearer later this year when a contract for the project is let, but we know our part will be more than the $7.5m we’ve had tagged since 2018. We’ll keep the community informed when we know more, but we’re looking forward to working with NZTA to get it built.”