Rachael Kelly/Stuff
Environment Southland has voted for a 6.9% rates increase for the 2023/24 year.
The ability of constituents on fixed incomes to be able to afford a rates increase was considered when Environment Southland councillors met on Wednesday.
At a full council meeting, the council voted for an average rates increase of 6.9%, and to consult with the community about an increase in council fees and charges of 7%.
Councillors discussed increasing rates by an average of 6.9%, which would forecast the council breaking even, or by an average of 8.5%, which would project an operating surplus for the 2023/24 year.
In a press release earlier this week, chairman Nicol Horrell said rising prices are impacting all parts of the community, and they were also affecting the council’s work-related costs.
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Cr Alistair Gibson voted against the motion to raise rates. During discussion earlier in the meeting he said the welfare of constituents was important, and he was concerned about the external pressure about cutting carbon, and he was concerned people would destock and move away.
Deputy chairman Jeremy McPhail told the meeting he was comfortable with a 6.9% rates rise and welcomed the increase in marine fees, but said the future would be challenging.
Cr Eric Roy said three years ago the council had indicated the rates rise for this year would be 5%, but at that time inflation was under 2% and interest rates were half what they were now. He questioned whether the regional council was putting rate payers at risk by increasing rates.
Chief financial officer Tanea Hawkins said if councillors went for the higher rate now, they wouldn’t have to go high next year.
“High rates now would take a little pressure off next year,’’ she said.
Cr Lyndal Ludlow said her initial concerns were that the council had a ‘’huge work” programme, but constituents on fixed incomes couldn’t just juggle pots of money around because they only have one pot.
Cr Eric Roy said the cost of living and on-farm inflation had been very seriously considered by councillors.
The council will consult with the public about the increase in fees and charges during May and report back to councillors in June.
