Gore District Council Tackles Budget Challenges with Proposed 21.4% Rate Increase

Gore District Council is set to discuss a potential rate increase of 21.4% at their upcoming meeting. This follows extensive efforts to reduce an initially projected 40% increase. Related: Gore DC Interim CEO Confirms Departure Date

• Initial Proposal: The Council faced a daunting 40% rate increase, reduced to 31.7% after initial cost-cutting measures.
• Further Reductions: An additional $2.2 million was saved by cutting various council expenditures.
• Final Proposal: The current 21.4% increase proposal incorporates extensive reductions and community feedback mechanisms.

The Council’s Interim Chief Executive, Stephen Parry, noted that initial projections showed a stark 40% increase, which was partially mitigated to 31.7% following a comprehensive review. Subsequent efforts and strategic budget cuts further reduced the proposed increase to 21.4%.

Cost-Cutting Measures Included:

• Partial funding of depreciation increases, saving $1.2 million.
• Deferrals in hiring, property renewals, IT upgrades, and maintenance totaling $598,000.
• Postponing the rollout of the kerbside recycling service until next April, saving $175,000.
• Downsizing the community strategy department to save $271,000 and trimming parks and reserves spending by $120,000.
• Deferring upgrades to the council’s customer service request system and certain capital projects in the Multisports complex, among other reductions.

Parry explained, “Faced with sharply rising costs, soaring depreciation, and significant infrastructure investments, we’ve had to make tough choices to propose a manageable rate increase.” He highlighted the need for local government funding reform but acknowledged the immediate burden on ratepayers to meet legislative requirements.

Projected Rate Increases: The Council anticipates that spreading the necessary increases over two years will mitigate the impact on the community, acknowledging the challenge of absorbing substantial rate hikes.

This proposal will undergo public consultation following the Council’s approval of the consultation document during Tuesday’s meeting.