Inflation, covid-related stresses and new property valuations have combined to have a big impact on rates this next financial year.

It’s these Big Three that we want to talk about when we consult on the Draft Annual Plan, which we expect to adopt in early April. That plan shows a 9.41 per cent increase on the amount of rates collected this financial year.

It’s not because Council has a string of major projects on the go.

The increase is the direct result of inflation, caused by covid. These financial circumstances are outside of our control as Councillors, but as we consider the budget for 2022-23 we have been able to make savings.

Not everyone will like them, but needs must in these unprecedented times.

In our Long Term Plan, we forecast rates would rise by an average 7.2 per cent based on 2.5 per cent inflation. Now coming up to Year 2 of that plan, inflation has hit a 30-year high at about 6 per cent and covid continues to affect supply chains and push up prices of everything from pipes to door handles.

So the budget is about keeping up levels of service expected by ratepayers – clean drinking water from your tap, the ability to flush the toilet and drive to work on roads that are in a safe condition. And it is about doing work that ensures Council infrastructure meets new Government compliance, like upgrading some of our drinking water supplies.

We’ve deferred other work, including the planned new entrance road into the Ashburton Domain.

The third issue that will affect people’s rates is their property rating valuation. The district has just gone through its three-year cycle of property revaluations – urban properties have increased in value more than rural properties, quite the opposite from a few cycles ago.

So rates increases will vary across the district.

We plan to hold a series of meetings with residents to help explain how we have arrived at the 2022-23 rates requirement. These gatherings may be in person or online, depending on covid protections measures in force at the time.

But know this, we are committed to hearing your ideas about what more we could realistically do to make savings while making sure the Ashburton district remains the place we want to live and work in.