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THE INDEPENDENT VOICE OF MID CANTERBURY
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Rates debate tomorrow By Sue Newman
sue.n@theguardian.co.nz
Next year’s rate rise for the Ashburton District is likely to be slashed from the planned 4.88 per cent, with a figure of zero on the council’s debating table. A Zoom attendance council meeting will be held on Thursday and councillors will look at two rates relief options – a nil or reduced rate increase and a relaxation of its penalty on late rates payment. In making a call on reducing the planned rate increase, councillors will have to weigh up calls they are receiving from ratepayers concerned at the financial implications of a rates bill arriving during the Covid-19 lockdown, and advice from central government to stick to their original budget to support the economy when the lockdown ends. If a zero rate rise is adopted the council would lose about $1.8 million in rates income for the year. If it opted to hold its fees and charges at their current level, the total reduction in income would hit $2.1 million. Some of the areas where the zero rate option would impact could include support to a number of agencies it currently provides grants to, tourism funding, zero staff wage increases and a tight rein on all non-critical ex-
penditure. Most of the council’s capital projects of significance are already committed and are funded by loans, so there is little opportunity to save on those. Any change to the rate increase would mean the council has to adjust its annual plan for next year. This is already in its draft stage and must be signed off by June 30. It had opted not to consult the community on the plan because it was very little different to its long- term plan for that year. However, in opting for a zero rate increase, the loss of income would be a significant departure from the long-term plan and community consultation would be required. The second arm of its rates relief debate will centre around penalties for late payment of the next instalment. While they do not have the legal ability to alter the 10 per cent penalty for late payment, councillors will consider relaxing the criteria and process around allowing people facing difficulty in paying the fourth instalment on time to achieve a penalty remission. Current policy only allows one penalty remission in a 24-month period.
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