By approving the Annual Plan 2022-2023, Hurunui District Council has illustrated it will be sticking to its game plan, despite the inflationary pressures it is facing.

Even though all three waters, (drinking, waste and storm) may transition into a new entity in 2024, Council continues to honour its commitment to delivering quality water services across all three areas, with a total of $11.4 million budgeted for in capital projects for water, and a further $1.4 million for sewerage.

The other core infrastructure, roading, is a service all rate payers fund, via a Roading rate. Council will not budge on the level of service that was proposed for in the Long Term Plan (LTP) 2021-2031, with more than $1.7 million ear marked to be spent on roading and footpaths within the next financial year.

In addition, nearly $1.5 million will be spent on public services such as new public toilets, and transfer station and reserve improvements.

Mayor Marie Black said due to inflation, the funds from rates have had to go significantly further for the 2022/23 year, but Council remains committed to upholding key service delivery to its District.

“We’ve had to leave off some projects, and it has been a difficult decision as to what must stay and what has to go,” she said, identifying the halving of funding for strengthening work for earthquake prone buildings from $200,000 to $100,000, as an example.

“Unfortunately, local Councils sit the same as everyone else, and are not immune to the current economic challenges.”

Due to inflation, an average rate increase of 10.5% was unanimously adopted at Thursday’s monthly Council meeting, Thursday June 30th, 2022. It was markedly higher than the 4.99% rate increase figure indicated in the LTP 2021-2031, but a consequence of an economic climate that has significantly superseded the inflation rates Council had allowed for, that being a 2.82% increase for Operating Expenditure and 3.01% increase for Capital Expenditure.

In addition, Council has recently renewed its roading contract, and after a period of seven years since the last contract was entered into, there has been an allowed budget increase of 30%.

Mayor Black said factors such as COVID-19 creating an effect on both the performance of Hanmer Springs Thermal Pool & Spa and the availability of contractors, a competitive market for retaining staff, and an increase in interest rates, have all been contributing factors to the 10.5% rate increase.

“Every household in the District will be feeling its own pinch as we ride this wave, but what I can confidently say is that Council is sticking to its game plan, sticking to its promise to continue to deliver key services to everyone in Hurunui.”

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